Title : The bilateral J-curve: Canada versus her 20 Trading Partners


Authors : Mohsen Bahmani-Oskooee, Gour Goswami, Bidyut Talukdar


Journal Title: International Review of Applied Economics Volume Number: 22 Publication Year : 2008 Issue Number: 1
Index: scopus Ranking: Q2 ISSN: 0269-2171 Publisher Name: Taylor and Francis
Pages : 93-104
ISBN : 1465-3486
Funding Information:
Funding Source : None
Other Information:
Direct Sustainable Development Goals :
SDG9 Industry, Innovation & Infrastructure
Indirect Sustainable Development Goals :
SDG9 Industry, Innovation & Infrastructure
Sustainable Development Sub Goals :
Develop quality, sustainable infrastructure
Promote inclusive and sustainable industrialization
Increase the access of small-scale industrial enterprises to financial services and value chains
Impact statement: There is a common belief that currency depreciation worsens the trade balance in the short run and improves it in the long run, resulting in the so-called J?curve phenomenon. Early studies employed aggregate data and provided mixed results. Recent studies, however, have employed disaggregated data to remove any aggregation bias from their analysis. In this article, we consider the Canadian experience and test the phenomenon between Canada and its 20 major trading partners. Using quarterly data and the bounds testing approach to cointegration and error?correction modelling, we were able to provide support for the J?curve in 11 out of 20 cases. Collaboration: Partner University Keywords: Canada, J Curve, Bilateral Trade Balance Modeling