NSU Research Contributions
Title : A Disaggregated Approach to test the J-Curve Phenomenon: Japan versus her Major Trading Partners
Authors : Mohsen Bahmani-Oskooee, Gour Goswami
| Journal Title: Journal of Economics and Finance | Volume Number: 27 | Publication Year : 2003 | Issue Number: 1 |
| Index: scopus | Ranking: Q2 | ISSN: 10550925 | Publisher Name: Springer Nature Link |
| Pages : 102-113 | |||
| Funding Source : None |
|
Direct Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Sustainable Development Sub Goals : Support infrastructure in developing countries |
| Impact statement: A limited number of studies have tested the J-Curve phenomenon using bilateral trade data between the United States and its major trading partners. In this paper, we test the J-Curve hypothesis by using quarterly bilateral data over the 1973–98 period between Japan and its nine major trading partners. We demonstrate that when aggregate data are used, there is no evidence of a J-curve in the short run, nor is there any significant relationship between the trade balance and the effective exchange rate in the long run. However, when bilateral data are employed, we find evidence of the J-Curve between Japan and Germany as well as between Japan and Italy. We also find that real depreciation of the yen has favorable long-run effects in the cases of Canada, the United Kingdom, and the United States. | Collaboration: Partner University | Keywords: Japan; J-Curve |
