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U.S. – Italy commodity trade and the J-curve: new evidence from asymmetry analysis

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  • Mohsen Bahmani-Oskooee

    (The University of Wisconsin-Milwaukee)

  • Ridha Nouira

    (EAS and FSEG Mahdia, Monastir University-Tunisia)

Abstract

Previous studies that tried to assess the J-curve phenomenon for Italy employed linear models and found little support for the phenomenon. In this paper we employ nonlinear models and estimate asymmetric J-curve effects for each of the 58 industries that trade between Italy and the United States. From estimates of the linear and nonlinear models we found support for the J-curve effect in 12 industries. The largest industry with 11.7% trade share was subject to the J-curve effect from the nonlinear model. Estimates of the nonlinear models also supported short-run asymmetric effects in 48 industries but long run asymmetric effects in 29.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Ridha Nouira, 2021. "U.S. – Italy commodity trade and the J-curve: new evidence from asymmetry analysis," International Economics and Economic Policy, Springer, vol. 18(1), pages 73-103, February.
  • Handle: RePEc:kap:iecepo:v:18:y:2021:i:1:d:10.1007_s10368-020-00472-4
    DOI: 10.1007/s10368-020-00472-4
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    Cited by:

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    More about this item

    Keywords

    J-curve; Industry data; The United States; Italy; Asymmetry analysis;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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