Quotation Badinger, Harald, Fichet de Clairfontaine, Aurélien. 2017. Dynamics of the Trade Balance: In Search of the J-Curve using a Structural Gravity Approach. Winterseminar der Gesellschaft für Regionalforschung (GfR), Spital am Pyhrn, Austria, 18.02.-24.02.


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Abstract

The present paper uses a structural gravity approach, specifying currency movements as component of trade costs, in order to derive an empirical trade balance model, which incorporates multilateral resistance terms and accounts for the cross-country variation in the magnitude of the exchange rate pass-through into import and export prices. The model then is estimated using quarterly bilateral trade flows between 47 countries, disaggregated into 97 commodity groups, over the period 2010Q1-2017Q2. The results support the existence of a pooled J-curve across countries and commodity sectors; at the same time they point to considerable heterogeneity in the effects across countries and industries below the surface of aggregate data.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Dynamics of the Trade Balance: In Search of the J-Curve using a Structural Gravity Approach
Event Winterseminar der Gesellschaft für Regionalforschung (GfR)
Year 2017
Date 18.02.-24.02.
Country Austria
Location Spital am Pyhrn
URL http://gfr.ersa.org/2016/10/31/winterseminar-2017/
JEL F12, F31, F32

Associations

People
Badinger, Harald (Details)
Fichet de Clairfontaine, Aurélien (Former researcher)
Organization
Institute for International Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1807 Economic geography (Details)
5300 Economics (Details)
5314 Trade Research (Details)
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