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Is there a long-run relation between the trade balance and the real effective exchange rate of LDCs?

✍ Scribed by Mohsen Bahmani-Oskooee


Book ID
116101268
Publisher
Elsevier Science
Year
1991
Tongue
English
Weight
394 KB
Volume
36
Category
Article
ISSN
0165-1765

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## Abstract A typical finding in the empirical literature is that import and export demand elasticities are rather low, and that the Marshall–Lerner (ML) condition does not hold. However, despite the evidence against the ML condition, the consensus is that real devaluations do improve the balance o