NSU Research Contributions
Title : Bilateral J-curve between the UK vis-a-vis her Major Trading Partners
Authors : Mohsen Bahmani-Oskooee, Clarie Economidou, Gour Goswami
| Journal Title: Applied Economics | Volume Number: 38 | Publication Year : 2006 | Issue Number: 8 |
| Index: scopus | Ranking: Q2 | ISSN: 00036846, 14664 | Publisher Name: Taylor & Francis |
| Pages : 879-888 | |||
| Funding Source : None |
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Direct Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG8 Decent Work & Economic Growth |
Sustainable Development Sub Goals : Develop quality, sustainable infrastructure Promote inclusive and sustainable industrialization Sustain per capita economic growth Increase trade support for least developed countries |
| Impact statement: Currency depreciation is said to worsen the trade balance before improving it, yielding a short-run pattern known as the J-curve phenomenon. While early studies tested the J-curve by using aggregate trade data, a few recent studies have employed bilateral data, mostly between the US and its major trading partners. In this paper, we extend the literature by examining the UK's experience. We test the phenomenon between the UK and her twenty major trading partners by employing data over 1973Q1–2001Q3 period. In most instances, we find no support for the J-curve in the short run. In the long run, only in five cases has the exchange rate had a significant impact on the bilateral trade balance. | Collaboration: Partner University | Keywords: J-Curve, UK, Bilateral Trade Balance Model |
