Devaluation and trade balance in Latin American countries
Yükleniyor...
Tarih
2009
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Preliminary Communication
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The aim of this paper is to examine effectiveness of devaluation on the trade balance in four countries: Argentina, Brazil, Mexico and Peru. We use the Johansen-Juselius cointegration test and impulse response function to estimate the long-run and shortrun effects of devaluation on the trade balance. The estimated results suggest that depreciation improve the trade balance in the long run for the case of Argentina and Peru, and in the short-run there has been J-curve in Argentina and Peru. In addition, the cointegration is found among the four variables (trade balance, domestic income, foreign incomes and real exchange rate) in the case of Argentina and Peru. The results also indicate that there is no cointegration relationship between these variables for Brazil and Mexico. The conclusion of the paper is that the evidence of the J-curve pattern was found for Argentina and Peru only.
Açıklama
Anahtar Kelimeler
Cointegration, Impulse Response Analysis, J-Curve, Latin America, Marshal-Lerner Condition, Trade Balance
Kaynak
Zbornik Radova Ekonomskog Fakultet au Rijeci
WoS Q Değeri
N/A
Scopus Q Değeri
Q3
Cilt
27
Sayı
1
