Testing J-curve hypothesis and analysing the effect of exchange rate volatility on the balance of trade in India

Real exchange rate effects on the balanc

Real exchange rate effects on the balance of trade: cointegration and the Marshall–Lerner condition

✍ Derick Boyd; Gugielmo Maria Caporale; Ron Smith 📂 Article 📅 2001 🏛 John Wiley and Sons 🌐 English ⚖ 218 KB 👁 1 views

## 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