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Global Economy Journal

The Official Publication of the International Trade and Finance Association

Ed. by Pelzman, Joseph

CiteScore 2018: 0.33

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Volume 13, Issue 1


Pakistan-EU Commodity Trade: Is there Evidence of J-Curve Effect?

Mohsen Bahmani-Oskooee
  • Corresponding author
  • Center for Research on International Economics, University of Wisconsin, Milwaukee, WI 53201, USA
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/ Javed Iqbal / Muhammad Muzammil
Published Online: 2017-02-15 | DOI: https://doi.org/10.1515/gej-2016-0067


In investigating the short run and the long run impact of currency depreciation on Pakistan’s trade balance, previous studies have either relied on using bilateral trade data between Pakistan and her trade partners or between Pakistan and the rest of the world and have found not much support for successful depreciation. Suspecting that these studies may suffer from aggregation bias, in this paper we use disaggregated trade data at commodity level from 77 industries that trade between Pakistan and EU. While we find short-run significant effects in 22 industries, these effects do not last into the long run in most industries. Most of the affected industries are found to be small, as measured by their trade shares.

This article offers supplementary material which is provided at the end of the article.

Keywords: J-Curve; bound testing; commodity trade; Pakistan; EU

JEL Classification: F31


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About the article

Published Online: 2017-02-15

Citation Information: Global Economy Journal, Volume 13, Issue 1, 20160067, ISSN (Online) 1553-5304, ISSN (Print) 2194-5659, DOI: https://doi.org/10.1515/gej-2016-0067.

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