publication . Other literature type . Preprint . 1997

Trade Balance and the J-Curve Phenomenon in Malawi

Mataya, Charles S.; Veeman, Michele M.; Mataya, Charles S.; Veeman, Michele M.;
English
  • Published: 01 Jan 1997
  • Publisher: Unknown
Abstract
The effects of successive currency devaluations, since the 1980s, on Malawi's trade balance are analysed. The major hypothesis tested is that currency devaluation leads to an improvement in trade balance through changes in the real exchange rate. This hypothesis is not supported by the data for Malawi. Although there is evidence of a lagged adjustment yielding an improvement in the trade balance three years after devaluation, the magnitude of this improvement is insufficient to overcome the initial decline in the trade balance following devaluation. The extent of improvement is not consistent with that implied by the hypothesized J-curve effect. The analysis sug...
Subjects
free text keywords: International Relations/Trade,, International Relations/Trade
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publication . Other literature type . Preprint . 1997

Trade Balance and the J-Curve Phenomenon in Malawi

Mataya, Charles S.; Veeman, Michele M.; Mataya, Charles S.; Veeman, Michele M.;