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The Effect of Exchange Rates on Trade Balance: An Empirical Study of Morocco

Author

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  • Hicham Sadok

    (Mohamed V University Rabat, Morocco)

Abstract

Objective � This paper aims to examine the relationship between exchange rates and trade balance in Morocco, to investigate whether the Marshall-Lerner condition and J-curve exist. Methodology/Technique � This paper attempts to identify the relationship between the real exchange rate and trade balance in Morocco between 2000 to 2015. Findings � Historically, exchange rates have had a strong impact on foreign trade in Morocco. Novelty � This study concludes that the fluctuation of exchange rates has no notable impact on the rate of foreign trade.

Suggested Citation

  • Hicham Sadok, 2018. "The Effect of Exchange Rates on Trade Balance: An Empirical Study of Morocco," GATR Journals jber151, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jber151
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    References listed on IDEAS

    as
    1. Rose, Andrew K. & Yellen, Janet L., 1989. "Is there a J-curve?," Journal of Monetary Economics, Elsevier, vol. 24(1), pages 53-68, July.
    2. Iman Sugema, 2005. "The Determinants of Trade Balance and Adjustment to the Crisis in Indonesia," Centre for International Economic Studies Working Papers 2005-08, University of Adelaide, Centre for International Economic Studies.
    3. Khim-sen Liew & Kian-Ping Lim & Huzaimi Hussain, 2003. "Exchange Rate and Trade Balance Relationship: The Experience of ASEAN Countries," International Trade 0307003, University Library of Munich, Germany.
    4. Jaleel Ahmad & Jing Yang, 2004. "Estimation of the J-Curve in China," Economics Study Area Working Papers 67, East-West Center, Economics Study Area.
    5. Moffett, Michael H., 1989. "The J-curve revisited: an empirical examination for the United States," Journal of International Money and Finance, Elsevier, vol. 8(3), pages 425-444, September.
    6. Rose, Andrew K., 1991. "The role of exchange rates in a popular model of international trade : Does the 'Marshall-Lerner' condition hold?," Journal of International Economics, Elsevier, vol. 30(3-4), pages 301-316, May.
    7. Hassan Shirvani & Barry Wilbratte, 1997. "The Relationship Between The Real Exchange Rate and The Trade Balance: An Empirical Reassessment," International Economic Journal, Taylor & Francis Journals, vol. 11(1), pages 39-50.
    8. Elif Akbostanci, 2002. "Dynamics of the trade balance: The Turkish J-curve," ERC Working Papers 0205, ERC - Economic Research Center, Middle East Technical University, revised May 2002.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other

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