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The Standard Model of Trade and the Marshall – Lerner Condition

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  • Krzyżanowski, Julian T.

Abstract

There are similarities between standard trade model and Marshall-Lerner condition. However, in order to see whether the condition can work both ways (with decrease and increase of the currency exchange rate), and the properties of this model could be thoroughly utilized, the revaluation case is being considered. The J-curve effect is also being examined. Looking at further research ideas, the Marshall–Lerner condition could be a complimentary tool in explaining the standard model.

Suggested Citation

  • Krzyżanowski, Julian T., 2017. "The Standard Model of Trade and the Marshall – Lerner Condition," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 17(32, Part ), December.
    • Handle: RePEc:ags:polpwa:266516
    DOI: 10.22004/ag.econ.266516
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    References listed on IDEAS

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    1. Mohsen Bahmani-Oskooee & Artatrana Ratha, 2004. "The J-Curve: a literature review," Applied Economics, Taylor & Francis Journals, vol. 36(13), pages 1377-1398.
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    3. Rose, Andrew K., 1991. "The role of exchange rates in a popular model of international trade : Does the 'Marshall-Lerner' condition hold?," Journal of International Economics, Elsevier, vol. 30(3-4), pages 301-316, May.
    4. Charles G. Renfro, 2009. "The Practice of Econometric Theory," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75571-5.
    5. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, April.
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