Abstract
Recently a new direction on the relation between the exchange rate and the trade balance has emerged where the emphasis is on application of asymmetry analysis and nonlinear models. Whereas, the linear models have failed to provide strong support for the J-curve effect, the nonlinear models have proved to be fruitful. We add to this later literature by estimating bilateral trade balance models of Tunisia with her six large partners. The results reveal that exchange rate changes do have short-run asymmetric effects in all six models, short-run adjustment asymmetric effects in three models, and significant long-run asymmetric effects in three models.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
