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 Pakistan’s 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 is used. The results do not provide any support for the standard J-curve phenomenon.
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Bibliographic InfoPaper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 2008:45.
Length: 11 pages
Date of creation: 2008
Date of revision:
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," Trade Working Papers 22179, East Asian Bureau of Economic Research.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-05 (All new papers)
- NEP-CWA-2008-07-05 (Central & Western Asia)
- NEP-IFN-2008-07-05 (International Finance)
- NEP-INT-2008-07-05 (International Trade)
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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