Asian Financial Crisis and Korean Trade Dynamics
AbstractSince the Asian financial crisis in 1997, Korean international trade has gone up substantially in both volume and trade balances. The improvement is largely due to an expansion of international markets through various bilateral trade agreements and the structural changes in Korean exchange rates. This paper investigates the exchange rate â€“ trade balance dynamics, popularly known as the J-curve phenomenon. Employing the Bounds-Testing approach to cointegration and error-correction modeling on Korean bilateral trade for the pre- and post- Asian crisis periods, the study finds that support for the strict version of the J-curves has been fading after the crisis. The weaker version of J-curve is generally supported in both pre- and post-crisis sample periods. There exists a long-run relationship among the Korean exchange rates, domestic income, foreign income, and Korean trading balances.
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.
Bibliographic InfoPaper provided by Saint Cloud State University, Department of Economics in its series Working Papers with number 2012-23.
Date of creation: 2012
Date of revision:
Contact details of provider:
Postal: 386 Stewart Hall, 720 4th Ave S, St. Cloud, MN 56301-4498
Phone: (320) 308-2227
Fax: (320) 308-2228
Web page: http://www.stcloudstate.edu/economics/
More information through EDIRC
Asian Financial Crisis; Asian Currency Crisis; J-Curve; exchange rate; trade balance; current account adjustment;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (King Banaian).
If references are entirely missing, you can add them using this form.