Estimation of the J-Curve Effect: The Case of Slovakia
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F12%3A%230001890" target="_blank" >RIV/47813059:19520/12:#0001890 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Estimation of the J-Curve Effect: The Case of Slovakia
Original language description
This paper empirically investigates the impact of change in exchange rate on export and import flows between Slovakia and its major trading partners. Devaluation or depreciation of a currency worsens the trade balance before improving it, resulting in aJ-curve pattern. This paper investigates J-curve phenomenon using quarterly time series data over the period 1997:1 to 2010:4. We apply the Johansen cointegration test to analyze the long run relationship between exchange rate and trade balance. Short term effects and the related J-curve effect is explored by estimating error correction model and by assessing the impulse-response function of the trade balance on the exchange rate shock. The results provide evidence that the classical J-curve effect doesnot exist in Slovakia. Instead, currency depreciation (increase in real effective exchange rate) is accompanied only by positive change in trade balance with no initial deterioration.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of 7th International Conference on Currency, Banking and International Finance
ISBN
978-80-225-3494-9
ISSN
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e-ISSN
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Number of pages
9
Pages from-to
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Publisher name
Ekonomická univerzita NHF
Place of publication
Bratislava
Event location
Bratislava
Event date
Jan 1, 2012
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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