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S-curve dynamics of trade between Sweden and her trading partners

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  • Bahmani-Oskooee, Mohsen
  • Ratha, Artatrana

Abstract

The S-curve sums up the dynamic relationship between terms of trade and trade balance. This pattern has received weak support in some developed and less developed countries when aggregate trade data are used. Empirical regularities based on aggregate trade data can be biased since aggregation can potentially suppress some of the patterns observed in trade at the bilateral level. This paper overcomes this problem by employing bilateral trade data from Sweden and finds that the S-curve is invariant to this level of disaggregation. Indeed, Sweden has a bilateral S-curve with 12 out of 17 cases examined for the 1980Q1-2005Q1 period.

Suggested Citation

  • Bahmani-Oskooee, Mohsen & Ratha, Artatrana, 2011. "S-curve dynamics of trade between Sweden and her trading partners," Economic Systems, Elsevier, vol. 35(3), pages 355-362, September.
    • Handle: RePEc:eee:ecosys:v:35:y:2011:i:3:p:355-362
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    References listed on IDEAS

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    1. Backus, David K & Kehoe, Patrick J & Kydland, Finn E, 1994. "Dynamics of the Trade Balance and the Terms of Trade: The J-Curve?," American Economic Review, American Economic Association, vol. 84(1), pages 84-103, March.
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    10. Mohsen Bahmani‐Oskooee & Scott W. Hegerty, 2010. "The J‐ and S‐curves: a survey of the recent literature," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 37(6), pages 580-596, November.
    11. Mohsen Bahmani-Oskooee & Zohre Ardalani, 2006. "Exchange Rate Sensitivity of U.S. Trade Flows: Evidence from Industry Data," Southern Economic Journal, John Wiley & Sons, vol. 72(3), pages 542-559, January.
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