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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
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Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF APPLIED BUSINESS AND ECONOMICS


​Testing the Marshall-Lerner Condition and the J-curve Effect on U.S. –China Trade



Author(s): Deergha Raj Adhikari 

Citation: Deergha Raj Adhikari, (2018) "Testing the Marshall-Lerner Condition and the J-curve Effect on U.S. –China Trade," Journal of Applied Business and Economics, Vol. 20, Iss.8,  pp. 11-18

Article Type: Research paper

Publisher: North American Business Press

​Abstract:

We estimate a VECM regressing the ratio of U.S. export to U.S. import from china on U.S. real GDP, China’s real GDP, and RREX (dollar-yuan real exchange rate). The real exchange rate variable is found to be negative but insignificant, failing to satisfy the Marshall-Lerner condition and implying that the dollar’s depreciation will have no effect on the U.S. trade balance with China in the long run. The variables ΔRREXt–1 and ΔRREXt–2 turn out to be negative and significant, implying that the dollar’s depreciation will have a negative effect on U.S. trade balance with China in the short run.