Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316118 
Year of Publication: 
2024
Citation: 
[Journal:] Review of Economics and Political Science (REPS) [ISSN:] 2631-3561 [Volume:] 9 [Issue:] 4 [Year:] 2024 [Pages:] 358-381
Publisher: 
Emerald, Bingley
Abstract: 
Purpose - In this paper we examine the validity of the J-curve hypothesis in four Southeast Asian economies (Indonesia, Malaysia, the Philippines and Thailand) over the 1980-2017 period. Design/methodology/approach - We employ the linear autoregressive distributed lags (ARDL) model that captures the dynamic relationships between the variables and additionally use the nonlinear ARDL model that considers the asymmetric effects of the real exchange rate changes. Findings - The estimated models were diagnostically sound, and the variables were found to be cointegrated. However, with the exception of Malaysia, the short- and long-run relationships did not attest to the presence of the J-curve effect. The trade flows were affected asymmetrically in Malaysia and the Philippines, suggesting the appropriateness of nonlinear ARDL in these countries. Originality/value - The previous research tended to examine the effects of the real exchange rate changes on the agricultural trade balance and specifically the J-curve effect (deterioration of the trade balance followed by its improvement) in the developed economies and rarely in the developing ones. In this paper, we address this omission.
Subjects: 
Agriculture
Cointegration
J-curve
Nonlinear ARDL
JEL: 
C22
F14
Q17
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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