Is there J-curve effect in the US Service Trade? Evidence from asymmetric analysis
Küçük Resim Yok
Tarih
2023
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Wiley
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
The J-curve hypothesis asserts that a depreciation could worsen the trade balance in the short run but improves it in the long run. In testing the hypothesis, almost all previous studies used trade data in goods only. We add to this literature by considering the US trade in insurance and financial services with each of its nine trading partners. Using quarterly data over the period 2003Q1-2019Q4, when we estimated a linear model, we found limited support for the J-curve effect. However, when we estimated a nonlinear model to assess the possibility of asymmetric response of a service trade to exchange rate changes, we found much more support for the hypothesis. Precisely, we found support for the asymmetric J-curve in the US insurance (finance) trade with Australia, Belgium, France, and Korea (Australia, Germany) and asymmetric inverse J-curve in the US insurance (finance) trade with Germany, Italy, and United Kingdom (Belgium, Canada).
Açıklama
Anahtar Kelimeler
asymmetric analysis, nine partners, service trade, the J-curve effect, the United States
Kaynak
International Journal of Finance & Economics
WoS Q Değeri
Q2
Scopus Q Değeri
Q2
Cilt
28
Sayı
4
