Asymmetry cointegration and the J-curve: new evidence from Africa. Issue 5 (4th May 2020)

• Record Type: Journal Article
• Authors: Bahmani-Oskooee, Mohsen; Arize, Augustine Chuck
• Is Part Of: Journal of economic studies. Volume 47:Issue 5(2020)
• Page Start: 969
• Page End: 984
• Publication Date: 2020-05-04
• Subjects: Nonlinear ARDL approach -- Asymmetry analysis -- The trade balance -- The exchange rate -- African countries; F31; Economics -- Periodicals; 330.05
• DOI: 10.1108/JES-09-2018-0333
• Languages: English
• ISSNs: 0144-3585

Abstract

Abstract : Purpose: The purpose is to assess the asymmetric effects of exchange rate changes on the trade balance using data from African nations. Design/methodology/approach: The methodology is based on the most recent development in asymmetry cointegration and error-correction modeling. Findings: While the authors find short-run asymmetric effects in many of the countries in their sample, asymmetry cointegration yields support for the new definition of the J-curve in Algeria, Cameroon, Ethiopia, Morocco, Tanzania and Zambia. Originality/value: This is the first study that applies nonlinear ARDL approach of Shin et al. (2014) using data from each of the 13 countries in Africa.