Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109929
Authors: 
Šimáková, Jana
Year of Publication: 
2014
Citation: 
[Journal:] European Financial and Accounting Journal [ISSN:] 1805-4846 [Volume:] 9 [Year:] 2014 [Issue:] 3 [Pages:] 50-66
Abstract: 
This paper empirically investigates the impact of change in exchange rate on export and import flows between Slovakia and its major trading partners. Devaluation or depreciation of a currency worsens the trade balance before improving it, resulting in a J-curve pattern. For the purpose of this paper, aggregated and disaggregated approaches are used. This paper investigates J-curve phenomenon using quarterly time series data over the period 1997:1 to 2013:4. The results provide evidence that the classical J-curve effect does not exist in Slovakia on the aggregated level. Instead, currency depreciation (increase in real effective exchange rate) is accompanied only by positive change in trade balance with no deterioration under initial value. On the bilateral level, there exists J- curve in trade with Hungary.
Subjects: 
Trade balance
J-curve
International trade
Exchange rate
Cointegration
JEL: 
F10
F14
F31
Persistent Identifier of the first edition: 
Document Type: 
Article

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