Is the J-Curve effect observable for small North European economies?

R. Scott Hacker, Abdulnasser Hatemi-J

Research output: Contribution to journalArticlepeer-review

48 Citations (Scopus)

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 languageEnglish
Pages (from-to)119-134
Number of pages16
JournalOpen Economies Review
Volume14
Issue number2
DOIs
Publication statusPublished - Apr 2003
Externally publishedYes

Keywords

  • Exogeneity
  • Generalized impulse response functions
  • J-curve
  • North European economies

ASJC Scopus subject areas

  • Economics and Econometrics

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