Bilateral J-Curves between Pakistan and Her Trading Partners
AbstractEarlier studies that investigated the J-Curve phenomenon for Pakistan employed aggregate trade data. These studies suffered from the aggregation bias problem. In order to overcome this constraint, this paper tests the effects of real exchange rate depreciation in the Pakistani Rupee on the bilateral trade balance between Pakistan and her 12 respective trade partners. These countries, together, account for almost half of Pakistans total trade. In order to differentiate between the long-run equilibrium and short-run disequilibrium dynamics, and also to deal with non-stationary data, the ARDL approach isused. The results do not provide any support for the standard J-curve phenomenon.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Trade Working Papers with number 22179.
Date of creation: Jan 2008
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J-Curve; Trade Balance; Marshall-Lerner Condition;
Other versions of this item:
- Zehra Aftab & Sajawal Khan, 2008. "Bilateral J-Curves between Pakistan and Her Trading Partners," PIDE-Working Papers, Pakistan Institute of Development Economics 2008:45, Pakistan Institute of Development Economics.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F31 - International Economics - - International Finance - - - Foreign Exchange
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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