Abstract

SCHALING, Eric  and  KABUNDI, Alain. The exchange rate, the trade balance and the J-curve effect in South Africa. S. Afr. j. econ. manag. sci. [online]. 2014, vol.17, n.5, pp.601-608. ISSN 2222-3436.

We find that for the period 1994-2011 there is robust statistical evidence that, in the long run, net exports are boosted by a weaker real effective exchange rate. However, this effect does not hold in the short run. We thus find empirical evidence supporting the J-curve effect for South Africa.

Keywords : cointegration; exchange rates; J-curve; trade balance.

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