Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Economics

Jahrbuch für Wirtschaftswissenschaften

Editor-in-Chief: Berlemann, Michael

Ed. by Haucap, Justus / Thum, Marcel

Online
ISSN
2366-035X
See all formats and pricing
More options …
Volume 68, Issue 3

Issues

Bilateral Trade Elasticity of Serbia and Her Trading Partners

Safet Kurtovic
  • Corresponding author
  • Faculty of Management and Business Economics, University of Travnik, Aleja Konzula 5, Travnik, 72270, Bosnia and Herzegovina
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Blerim Halili
  • Faculty of Engineering Management, University „Union – Nikola Tesla“, Bulevar vojvode Mišića 43, 11000, Belgrade, Serbia
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Nehat Maxhuni
  • Faculty of Engineering Management, University „Union – Nikola Tesla“, Bulevar vojvode Mišića 43, 11000, Belgrade, Serbia
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2017-11-09 | DOI: https://doi.org/10.1515/roe-2017-0012

Abstract

Almost all countries face the problems of trade balance, although they are more inherent in developing countries and economies in transition. A majority of economists adhere to a common opinion that real depreciation may lead to an improvement of trade balance. That said, countries encountering trade balance issues use real exchange rate depreciation in order to improve trade balance. In fact, this research refers to the assessment of bilateral elasticity effect of real exchange rate depreciation and the income on export and import demand function of Serbia and its nine leading partners. 2004Q1-2015Q4 data and ARDL approach have been used in this research. The results obtained show the presence of the J-curve in cases of Germany, Austria and Croatia. On the other hand, we examined if the Marshall-Lerner condition was fulfilled in the case of bilateral trade with Austria. Finally, we found that the elasticity of income has a greater effect on the export and import demand function, in relation to the elasticity of the exchange rate.

Keywords: J-curve; Marshall-Lerner condition; exchange rate; income; trade balance

JEL Classification: F14; F31; F32

References

About the article

Published Online: 2017-11-09

Published in Print: 2017-11-27


Citation Information: Review of Economics, Volume 68, Issue 3, Pages 181–204, ISSN (Online) 2366-035X, ISSN (Print) 0948-5139, DOI: https://doi.org/10.1515/roe-2017-0012.

Export Citation

© 2017 Oldenbourg Wissenschaftsverlag GmbH, Published by De Gruyter Oldenbourg, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Safet Kurtović, Blerim Halili, and Nehat Maxhuni
Indian Economic Review, 2019, Volume 54, Number 1, Page 51

Comments (0)

Please log in or register to comment.
Log in