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Bahmani-Oskooee, M., Hajilee, M. German-US Commodity Trade: Is there a J-Curve Effect. Applied Economics Quarterly, 58(4), 327-353. https://doi.org/10.3790/aeq.58.4.327
Bahmani-Oskooee, Mohsen and Hajilee, Masoomeh "German-US Commodity Trade: Is there a J-Curve Effect" Applied Economics Quarterly 58.4, , 327-353. https://doi.org/10.3790/aeq.58.4.327
Bahmani-Oskooee, Mohsen/Hajilee, Masoomeh: German-US Commodity Trade: Is there a J-Curve Effect, in: Applied Economics Quarterly, vol. 58, iss. 4, 327-353, [online] https://doi.org/10.3790/aeq.58.4.327

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German-US Commodity Trade: Is there a J-Curve Effect

Bahmani-Oskooee, Mohsen | Hajilee, Masoomeh

Applied Economics Quarterly, Vol. 58 (2012), Iss. 4 : pp. 327–353

4 Citations (CrossRef)

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Department of Economics and the Center for Research on International Economics, the University of Wisconsin-Milwaukee, Milwaukee, Wisconsin.

School of Business Administration, University of Houston-Victoria, Victoria, Texas.

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  2. U.S.-German commodity trade and the J-curve: New evidence from asymmetry analysis

    Bahmani-Oskooee, Mohsen | Nouira, Ridha

    Economic Systems, Vol. 45 (2021), Iss. 2 P.100779

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  3. Impact of exchange rate and its volatility on domestic consumption in India and Pakistan

    Mumtaz, Seher | Ali, Muhammad

    Journal of Public Affairs, Vol. (2020), Iss.

    https://doi.org/10.1002/pa.2479 [Citations: 3]
  4. Managing the Macroeconomy

    Rupee Movements and India’s Trade Balance: Exploring the Existence of a J-Curve

    Rajan, Ramkishen S. | Yanamandra, Venkataramana

    2015

    https://doi.org/10.1057/9781137534149_5 [Citations: 1]

Abstract

The short-run and long-run effects of currency depreciation on the trade balance of Germany have been investigated by several studies. Studies that have used aggregate trade data between Germany and the rest of the world have been said to suffer from aggregation bias. Those that disaggregated their trade data by trading partners and looked at the response of bilateral trade found neither short-run nor long-run effects. In this paper, we disaggregate bilateral trade data between Germany and the US by commodity and consider the response of the trade balance of 131 industries to real depreciations of the euro. We find that while in the short run, 91 industries respond to the depreciation of euro, these short-run effects last into the long run in 59 industries. Furthermore, the J-curve pattern was discovered in 31 cases.

JEL Classification: F31