The J-curve : evidence from Fiji

The J-curve : evidence from Fiji

Narayan, Paresh Kumar and Narayan, Seema 2004, The J-curve : evidence from Fiji, International review of applied economics, vol. 18, no. 3, pp. 369-380.

Title	The J-curve : evidence from Fiji
Author(s)	Narayan, Paresh Kumar Narayan, Seema
Journal name	International review of applied economics
Volume number	18
Issue number	3
Start page	369
End page	380
Publisher	Routledge
Place of publication	London, England
Publication date	2004-07
ISSN	0269-2171 1465-3486
Summary	This article provides new evidence on both long run and short-run determinants of trade balance for Fiji and investigates evidence of J-curve adjustment behaviour in the aftermath of a devaluation. We adopt a partial reduced form model that models the real trade balance directly as a function of the real exchange rate and real domestic and foreign incomes. Cointegration analysis is based on a recently developed autoregressive distributed lag approach—shown to provide robust results in finite samples. The long run elasticities are also estimated using a dynamic ordinary least squares approach and the Fully Modified Ordinary Least Squares (FM-OLS) approach. Amongst our key results we find that there is a long-run relationship between trade balance and its determinants. There is evidence of the J-curve pattern; growth in domestic income affects Fiji's trade balance adversely while foreign income improves it.
Language	eng
Field of Research	140212 Macroeconomics (incl Monetary and Fiscal Theory)
HERDC Research category	C1.1 Refereed article in a scholarly journal
Persistent URL	http://hdl.handle.net/10536/DRO/DU:30024688

Document type:	Journal Article
Collection:	School of Accounting, Economics and Finance

Citation counts:	Cited 24 times in Scopus
Access Statistics:	300 Abstract Views - Detailed Statistics
Created:	Tue, 02 Mar 2010, 11:29:43 EST

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