Abstract
This paper investigates whether a J-curve can be detected in the time series data on China’s bilateral trade with the G-7 countries. It utilizes cointegration and causality tests to ascertain both the long-run relatedness, and the short-run dynamics, between the real exchange rate, national income, and the trade balance. There is some evidence that a real depreciation eventually improves the trade balance with some countries. But there is no indication of a negative short-run response which characterizes the J-curve.
Keywords
Citation
Ahmad, J. and Yang, J. (2007), "Estimation of the J-curve in China: a cointegration approach", Journal of International Logistics and Trade, Vol. 5 No. 2, pp. 103-115. https://doi.org/10.24006/jilt.2007.5.2.103
Publisher
:Emerald Publishing Limited
Copyright © 2007 Jungseok Research Institute of International Logistics and Trade
License
This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited