Asymmetric J-curve: evidence from industry trade between U.S. and U.K.

Mohsen Bahmani-Oskooee, Muhammad Ali Nasir

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Previous research that assessed the impact of exchange rate changes on the trade balance between the U.S. and U.K. assumed the effects are symmetric. In this paper, we add to the literature on the asymmetric J-curve phenomenon by considering the trade balance of 68 two-digit industries that trade between the two countries. We find short-run asymmetric effects of the real dollar-pound rate in almost all industries. However, short-run asymmetric effects were translated into significant long-run asymmetric effects in 25 industries. Indeed, the asymmetric J-curve hypothesis was supported in 18 industries.
Original languageEnglish
Pages (from-to)2679-2693
Number of pages15
JournalApplied Economics
Volume52
Issue number25
Early online date25 Nov 2019
DOIs
Publication statusPublished - 27 May 2020
Externally publishedYes

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