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China’s trade in services and asymmetric J-curve

Author

Listed:
  • Xu, Jia
  • Bahmani-Oskooee, Mohsen
  • Karamelikli, Huseyin

Abstract

Almost all studies that tested the J-curve phenomenon, used trade data in only goods. Trade in service has received no attention until recently when one study tested the symmetric and asymmetric J-curve hypothesis using financial and insurance service data between the U.S. and its major partners. In this paper we add to this new literature by testing the symmetric and asymmetric J-curve effect using China’s service trade with rest of the world. We find support for the J-curve effect in six out of 12 service industries, symmetric in some and asymmetric in some others.

Suggested Citation

  • Xu, Jia & Bahmani-Oskooee, Mohsen & Karamelikli, Huseyin, 2022. "China’s trade in services and asymmetric J-curve," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 204-210.
  • Handle: RePEc:eee:ecanpo:v:76:y:2022:i:c:p:204-210
    DOI: 10.1016/j.eap.2022.08.005
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    References listed on IDEAS

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    More about this item

    Keywords

    J-curve; China; Service trade; Real effective exchange rate; Asymmetric analysis;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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