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Is there J-Curve effect in Africa?

Author

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  • Mohsen Bahmani-Oskooee
  • Abera Gelan

Abstract

The J-Curve is a term used to describe the post-devaluation behavior of the trade balance, i.e., initial deterioration followed by an improvement. Previous research has tested the phenomenon for many developed and developing countries. However, African nations have not received any attention on this regard. In this paper, we test the hypothesis for nine African countries of Burundi, Egypt, Kenya, Mauritius, Morocco, Nigeria, Sierra Leone, South Africa, and Tanzania for which quarterly trade data were available. After using the bounds testing approach to cointegration and error-correction modeling, we were unable to find any support for the J-Curve.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Abera Gelan, 2012. "Is there J-Curve effect in Africa?," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(1), pages 73-81, June.
    • Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:73-81
    DOI: 10.1080/02692171.2011.619972
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    Cited by:

    1. Salah A. Nusair, 2017. "The J-Curve phenomenon in European transition economies: A nonlinear ARDL approach," International Review of Applied Economics, Taylor & Francis Journals, vol. 31(1), pages 1-27, January.
    2. Yaya KEHO, 2021. "Real Exchange Rate Dynamics and Trade Balance in WAEMU Countries: Evidence from Panel Nonlinear ARDL Approach," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 5(2), pages 1-22.
    3. Gulzar Ali & Kaleem Ullah & Said Zamin Shah & Shaista Khan, 2022. "Testing Of Marshall-Lerner Condition: Evidence From Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(1), pages 46-52, March.
    4. Peguero, Anadel G. & Cruz-Rodríguez, Alexis, 2016. "Condición Marshall-Lerner y el efecto Curva J: Evidencias para la República Dominicana [Marshall-Lerner Condition and J-Curve Effect: Evidence for the Dominican Republic]," MPRA Paper 71535, University Library of Munich, Germany.
    5. Kwame Akosah, Nana & Omane-Adjepong, Maurice, 2017. "Exchange Rate and External Trade Flows: Empirical Evidence of J-Curve Effect in Ghana," MPRA Paper 86640, University Library of Munich, Germany, revised Dec 2017.
    6. Mohsen Bahmani-Oskooee and Hanafiah Harvey, 2018. "The U.S. Trade Balance with Partners from Developing World: An Asymmetry Analysis of the J-Curve Effect," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(2), pages 29-44, June.
    7. Bilal KARGI, 2014. "Time Series Analysis about the Relationship between Foreign Trade and Exchange Rate in Turkish Economy," Timisoara Journal of Economics and Business, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 7(2), pages 123-133, December.
    8. Yaya Keho, 2021. "Real Exchange Rate and Trade Balance Dynamics in Cote d Ivoire," International Journal of Economics and Financial Issues, Econjournals, vol. 11(1), pages 61-70.
    9. Hafsa Hina, 2020. "Correction of Trade Deficit through Depreciation - A Misdirected Policy: An Empirical Evidence from Pakistan," PIDE-Working Papers 2020:24, Pakistan Institute of Development Economics.
    10. Trofimov, Ivan D., 2020. "The J-curve Effect in Agricultural Commodity Trade: An Empirical Study of South East Asian Economies," MPRA Paper 106701, University Library of Munich, Germany.
    11. Yaya Keho, 2020. "Impact of Foreign Direct Investment on Trade Balance: Evidence from Cote d’Ivoire," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(7), pages 113-113, July.
    12. Hafsa Hina, 2021. "What Do We Know of Trade Elasticities?," PIDE Knowledge Brief 2021:30, Pakistan Institute of Development Economics.

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