Testing the Marshall-Lerner condition for Romania
In this paper, we test if a depreciation of a national currency will lead to an improvement of the trade balance. We chose the bilateral relationship of Romania and its ten main trading partners. This study will fill the gap in the Romanian literature on this topic in two ways. Firstly, by using a l...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2022-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1578.pdf
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| _version_ | 1811332104706850816 |
|---|---|
| author | Ecaterina TOMOIAGA Monica Ioana POP SILAGHI |
| author_facet | Ecaterina TOMOIAGA Monica Ioana POP SILAGHI |
| author_sort | Ecaterina TOMOIAGA |
| collection | DOAJ |
| description | In this paper, we test if a depreciation of a national currency will lead to an improvement
of the trade balance. We chose the bilateral relationship of Romania and its ten main trading
partners. This study will fill the gap in the Romanian literature on this topic in two ways. Firstly, by
using a larger data set than it is used in previous studies. The data set consists of panel data for the
period 1999-2019. Secondly, by applying a Fully Modified Ordinary Least Square model we test the
long-run relationship between the real exchange rate and trade balance. Through the analysis
carried out, we obtained the result that a depreciation of the RON will lead to an improvement in
the Romanian trade balance. |
| first_indexed | 2024-04-13T16:30:52Z |
| format | Article |
| id | doaj.art-c2625b7af3b64d78a6ade9f43963a98f |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-04-13T16:30:52Z |
| publishDate | 2022-03-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-c2625b7af3b64d78a6ade9f43963a98f2022-12-22T02:39:35ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292022-03-01XXIX1394818418678Testing the Marshall-Lerner condition for RomaniaEcaterina TOMOIAGA0Monica Ioana POP SILAGHI1 Babes-Bolyai University, Cluj-Napoca, Romania Babes-Bolyai University, Cluj-Napoca, Romania In this paper, we test if a depreciation of a national currency will lead to an improvement of the trade balance. We chose the bilateral relationship of Romania and its ten main trading partners. This study will fill the gap in the Romanian literature on this topic in two ways. Firstly, by using a larger data set than it is used in previous studies. The data set consists of panel data for the period 1999-2019. Secondly, by applying a Fully Modified Ordinary Least Square model we test the long-run relationship between the real exchange rate and trade balance. Through the analysis carried out, we obtained the result that a depreciation of the RON will lead to an improvement in the Romanian trade balance. http://store.ectap.ro/articole/1578.pdf marshall-lerner panelnational currency depreciationtrade balanceromania |
| spellingShingle | Ecaterina TOMOIAGA Monica Ioana POP SILAGHI Testing the Marshall-Lerner condition for Romania Theoretical and Applied Economics marshall-lerner panel national currency depreciation trade balance romania |
| title | Testing the Marshall-Lerner condition for Romania |
| title_full | Testing the Marshall-Lerner condition for Romania |
| title_fullStr | Testing the Marshall-Lerner condition for Romania |
| title_full_unstemmed | Testing the Marshall-Lerner condition for Romania |
| title_short | Testing the Marshall-Lerner condition for Romania |
| title_sort | testing the marshall lerner condition for romania |
| topic | marshall-lerner panel national currency depreciation trade balance romania |
| url |
http://store.ectap.ro/articole/1578.pdf
|
| work_keys_str_mv | AT ecaterinatomoiaga testingthemarshalllernerconditionforromania AT monicaioanapopsilaghi testingthemarshalllernerconditionforromania |