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Exchange Rate and Trade: J-curve in European Union

Author

Listed:
  • Dan Lupu

    (Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Romania)

  • Mircea Asandului

    (Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Romania)

Abstract

The EU economy is experiencing a severe recession amid the global crisis, and although in other regions began to appear mild signs of recovery, in EU countries are recorded a continuously worsening. In many European states, the economic contraction is a consequence of the decrease in net exports component of GDP. The aim of the article is to analyze the situation in which the EU chooses to devalue its currency to increase exports. We found that, the depreciation of the Euro, has no influence on exports and that in EU, it is not expressed a J-curve effects.

Suggested Citation

  • Dan Lupu & Mircea Asandului, 2014. "Exchange Rate and Trade: J-curve in European Union," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 136-145, June.
    • Handle: RePEc:dug:actaec:y:2014:i:3:p:136-145
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/2326/2134
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    References listed on IDEAS

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    Cited by:

    1. Dan LUPU & Mircea ASANDULUI, 2015. "Comparative Assessment Of Efficiency In Attracting European Funds By Regions Of Eastern European Countries," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7(2a), pages 531-544, September.
    2. Lupu, Dan & Asandului, Mircea, 2014. "Considerations on the relantionship between exchange rates and stock markets in Eastern Europe in time of crisis," MPRA Paper 95507, University Library of Munich, Germany.
    3. IACOBUTA Andreea-Oana & ASANDULUI Mircea & TIGANAS Claudiu-Gabriel, 2015. "Institutional Environment, Initial Conditions And State Fragility In Post-Communist Countries," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 67(4), pages 63-77.

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