Empirical evidence of the J-curve hypothesis
By: Kulkarni, Kishore G.
Contributor(s): Bhatia, Alpna.
Material type:
ArticlePublisher: 2001Description: p.549-60.Subject(s): Currency devaluation
In:
Indian Journal of EconomicsSummary: Devaluation of a currency is expected to have a J-Curve effect meaning that balance of trade initially deteriorates and eventually improves. Numerous studies have tested this effect for several countries with some amount of success in its validity. This paper tries to use the data of seven countries to test the evidence of J-curve hypothesis. It is found that with the exception of China all six countries show J-curve phenomenon after their currency devaluation. In case of Japan, the currency has appreciated significantly hence the inverted J-curve is witnessed. - Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | Volume no: 81, Issue no: 323 | Available | AR50498 |
Devaluation of a currency is expected to have a J-Curve effect meaning that balance of trade initially deteriorates and eventually improves. Numerous studies have tested this effect for several countries with some amount of success in its validity. This paper tries to use the data of seven countries to test the evidence of J-curve hypothesis. It is found that with the exception of China all six countries show J-curve phenomenon after their currency devaluation. In case of Japan, the currency has appreciated significantly hence the inverted J-curve is witnessed. - Reproduced
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