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A convenient method for the estimation of ARDL parameters and test statistics: USA trade balance and real effective exchange rate relation

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  • Arize, Augustine C.

Abstract

This paper suggests an alternative yet effective way of obtaining long-run parameters of ARDL estimators as well as their test statistics. We contribute by providing an approach that is simple to implement, user-friendly and portable in which we can simultaneously investigate not only the long-run relationship but also the short-run dynamics. Additionally, our approach can be used without the need to buy new software, and it may be indispensable in the face of tighter expenditure budgets and the increasing cost of education for students. Finally, we affirm our approach by demonstrating through bivariate and multivariate examples using the trade balance of the United States.

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  • Arize, Augustine C., 2017. "A convenient method for the estimation of ARDL parameters and test statistics: USA trade balance and real effective exchange rate relation," International Review of Economics & Finance, Elsevier, vol. 50(C), pages 75-84.
    • Handle: RePEc:eee:reveco:v:50:y:2017:i:c:p:75-84
    DOI: 10.1016/j.iref.2017.03.024
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    2. Ahmed Mohamed Dahir & Fuaziah Mahat & A. N. Bany-Ariffin & Nazrul Hisyam Ab Razak, 2017. "The Real Exchange Rate-Foreign Direct Investment Controversy in South Africa: An Application of ARDL Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(11), pages 207-217, November.
    3. Ebere Ume Kalu & Augustine C Arize & Okoro E U Okoro & Florence Ifeoma Onaga & Felix Chukwubuzo Alio, 2020. "A cross-country and country-specific modelling of stock market performance, bank development and global equity index in emerging market economies: A case of BRICS countries," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-20, November.
    4. Thorbecke, Willem, 2018. "The exposure of U.S. manufacturing industries to exchange rates," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 538-549.
    5. Nesrine Dardouri & Abdelkader Aguir & Ramzi Farhani & Mounir Smida, 2023. "Revisiting the Determinants of Investment- The Case of Tunisia," Post-Print hal-04101430, HAL.

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