Abstract
PurposeThe purpose is to assess the asymmetric effects of exchange rate changes on the trade balance using data from African nations.Design/methodology/approachThe methodology is based on the most recent development in asymmetry cointegration and error-correction modeling.FindingsWhile the authors find short-run asymmetric effects in many of the countries in their sample, asymmetry cointegration yields support for the new definition of the J-curve in Algeria, Cameroon, Ethiopia, Morocco, Tanzania and Zambia.Originality/valueThis is the first study that applies nonlinear ARDL approach of Shin et al. (2014) using data from each of the 13 countries in Africa.
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