Testing the Marshall-Lerner Condition and the J-curve Effect on U.S. –China Trade

Authors

  • Deergha Raj Adhikari University of Louisiana at Lafayette

DOI:

https://doi.org/10.33423/jabe.v20i8.207

Keywords:

Business, Economics, Trading, Global Economic

Abstract

We estimate a VECM regressing the ratio of U.S. export to U.S. import from china on U.S. real GDP,
China’s real GDP, and RREX (dollar-yuan real exchange rate). The real exchange rate variable is found to be negative but insignificant, failing to satisfy the Marshall-Lerner condition and implying that the dollar’s depreciation will have no effect on the U.S. trade balance with China in the long run. The variables

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Published

2018-12-01

How to Cite

Adhikari, D. R. (2018). Testing the Marshall-Lerner Condition and the J-curve Effect on U.S. –China Trade. Journal of Applied Business and Economics, 20(8). https://doi.org/10.33423/jabe.v20i8.207

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Section

Articles