Abstract
The present study tests for the J-curve for five North European countries- Belgium, Denmark, The Netherlands, Norway, and Sweden-using generalized impulse response functions. The results provide empirical support for the J-curve. Each country has an impulse response function generated from a vector error-correction model that suggests that after a depreciation, there will be a dip in the export-import ratio within the first half-year after the depreciation. The long-run export-import ratio appears to be higher than the low point of this early dip in almost all cases. Also, in most cases, the export-import ratio appears in many periods after the depreciation to be converging from below to a higher long-run equilibrium.
Original language | English |
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Pages (from-to) | 119-134 |
Number of pages | 16 |
Journal | Open Economies Review |
Volume | 14 |
Issue number | 2 |
DOIs | |
Publication status | Published - Apr 2003 |
Externally published | Yes |
Keywords
- Exogeneity
- Generalized impulse response functions
- J-curve
- North European economies
ASJC Scopus subject areas
- Economics and Econometrics