Test of the Marshall-Lerner Condition for Eight Selected Asian Countries and Policy Implications
AbstractApplying a general functional form, the Marshall-Lerner condition of the bilateral trade between the US and Hong Kong, India, Japan, Korea, Malaysia, Pakistan, Singapore, or Thailand is examined. In deriving the real exchange rate, both the relative consumer price index (CPI) and producer price index (PPI) are considered. The results show that the widely used log-log form can be rejected for Singapore and Malaysia using either the relative CPI or PPI and is also inappropriate for India and Pakistan using the relative PPI. The Marshall-Lerner condition holds for India, Korea, Japan and Pakistan, is confirmed for Hong Kong, Singapore and Thailand using the relative CPI, and cannot be confirmed for Malaysia. Thus, in examining the Marshall-Lerner condition or the exchange rate behavior, non-linearity or the appropriateness of the functional form needs to be tested
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Global Economic Review.
Volume (Year): 39 (2010)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RGER20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Sastre, Luis, 2012. "Simultaneity between export and import flows and the Marshall–Lerner condition," Economic Modelling, Elsevier, vol. 29(3), pages 879-883.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.