The exchange rate, the trade balance and the J-curve effect in South Africa

The exchange rate, the trade balance and the J-curve effect in South Africa

We find that for the period 1994-2011 there is robust statistical evidence that, in the long run, net exports are boosted by a weaker real effective exchange rate. However, this effect does not hold in the short run. We thus find empirical evidence supporting the J-curve effect for South Africa.

Bibliographic Details
Main Authors: Eric Schaling, Alain Kabundi
Format: Article
Language:English
Published: AOSIS 2014-11-01
Series:South African Journal of Economic and Management Sciences
Online Access:https://sajems.org/index.php/sajems/article/view/727
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spelling doaj-6b55062d5db3434ab8b74d65db00a9a02020-11-25T00:58:20ZengAOSISSouth African Journal of Economic and Management Sciences1015-88122222-34362014-11-0117560160810.4102/sajems.v17i5.727376The exchange rate, the trade balance and the J-curve effect in South AfricaEric Schaling0Alain Kabundi1Wits Business SchoolSA Reserve BankWe find that for the period 1994-2011 there is robust statistical evidence that, in the long run, net exports are boosted by a weaker real effective exchange rate. However, this effect does not hold in the short run. We thus find empirical evidence supporting the J-curve effect for South Africa.https://sajems.org/index.php/sajems/article/view/727
collection DOAJ
language English
format Article
sources DOAJ
author Eric Schaling
Alain Kabundi
spellingShingle Eric Schaling
Alain Kabundi
The exchange rate, the trade balance and the J-curve effect in South Africa
South African Journal of Economic and Management Sciences
author_facet Eric Schaling
Alain Kabundi
author_sort Eric Schaling
title The exchange rate, the trade balance and the J-curve effect in South Africa
title_short The exchange rate, the trade balance and the J-curve effect in South Africa
title_full The exchange rate, the trade balance and the J-curve effect in South Africa
title_fullStr The exchange rate, the trade balance and the J-curve effect in South Africa
title_full_unstemmed The exchange rate, the trade balance and the J-curve effect in South Africa
title_sort exchange rate, the trade balance and the j-curve effect in south africa
publisher AOSIS
series South African Journal of Economic and Management Sciences
issn 1015-8812
2222-3436
publishDate 2014-11-01
description We find that for the period 1994-2011 there is robust statistical evidence that, in the long run, net exports are boosted by a weaker real effective exchange rate. However, this effect does not hold in the short run. We thus find empirical evidence supporting the J-curve effect for South Africa.
url https://sajems.org/index.php/sajems/article/view/727
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