Estimation of the J-curve in China: a cointegration approach
This paper investigates whether a J-curve can be detected in the time series data on China’s bilateral trade with the G-7 countries. It utilizes cointegration and causality tests to ascertain both the long-run relatedness, and the short-run dynamics, between the real exchange rate, national income,...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2007-12-01
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| Series: | Journal of International Logistics and Trade |
| Online Access: | https://www.emerald.com/insight/content/doi/10.24006/jilt.2007.5.2.103/full/pdf |
| _version_ | 1827749946298728448 |
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| author | Jaleel Ahmad Jing Yang |
| author_facet | Jaleel Ahmad Jing Yang |
| author_sort | Jaleel Ahmad |
| collection | DOAJ |
| description | This paper investigates whether a J-curve can be detected in the time series data on China’s bilateral trade with the G-7 countries. It utilizes cointegration and causality tests to ascertain both the long-run relatedness, and the short-run dynamics, between the real exchange rate, national income, and the trade balance. There is some evidence that a real depreciation eventually improves the trade balance with some countries. But there is no indication of a negative short-run response which characterizes the J-curve. |
| first_indexed | 2024-03-11T06:35:40Z |
| format | Article |
| id | doaj.art-33a4d28fbfe543e1b0f70e7b1007b0c3 |
| institution | Directory Open Access Journal |
| issn | 1738-2122 2508-7592 |
| language | English |
| last_indexed | 2024-03-11T06:35:40Z |
| publishDate | 2007-12-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of International Logistics and Trade |
| spelling | doaj.art-33a4d28fbfe543e1b0f70e7b1007b0c32023-11-17T10:54:01ZengEmerald PublishingJournal of International Logistics and Trade1738-21222508-75922007-12-015210311510.24006/jilt.2007.5.2.103Estimation of the J-curve in China: a cointegration approachJaleel Ahmad0Jing Yang11Department of Economics, Concordia University, 1455 Blvd de Maisonneuve, Montreal, Qc Canada H3G 1M81Department of Economics, Concordia University, 1455 Blvd de Maisonneuve, Montreal, Qc Canada H3G 1M8This paper investigates whether a J-curve can be detected in the time series data on China’s bilateral trade with the G-7 countries. It utilizes cointegration and causality tests to ascertain both the long-run relatedness, and the short-run dynamics, between the real exchange rate, national income, and the trade balance. There is some evidence that a real depreciation eventually improves the trade balance with some countries. But there is no indication of a negative short-run response which characterizes the J-curve.https://www.emerald.com/insight/content/doi/10.24006/jilt.2007.5.2.103/full/pdf |
| spellingShingle | Jaleel Ahmad Jing Yang Estimation of the J-curve in China: a cointegration approach Journal of International Logistics and Trade |
| title | Estimation of the J-curve in China: a cointegration approach |
| title_full | Estimation of the J-curve in China: a cointegration approach |
| title_fullStr | Estimation of the J-curve in China: a cointegration approach |
| title_full_unstemmed | Estimation of the J-curve in China: a cointegration approach |
| title_short | Estimation of the J-curve in China: a cointegration approach |
| title_sort | estimation of the j curve in china a cointegration approach |
| url | https://www.emerald.com/insight/content/doi/10.24006/jilt.2007.5.2.103/full/pdf |
| work_keys_str_mv | AT jaleelahmad estimationofthejcurveinchinaacointegrationapproach AT jingyang estimationofthejcurveinchinaacointegrationapproach |