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The J-Curve at the industry level: evidence from U.S.-India trade

Author

Listed:
  • Mohsen Bahmani-Oskooee

    (University of Wisconsin-Milwaukee)

  • Rajarshi Mitra

    (University of Wisconsin-Milwaukee)

Abstract

Previous studies that investigated the impact of real depreciation of the rupee on Indian trade balance used aggregate trade data and provided mixed results. One recent study disaggregated the trade data between India and the rest of the world and used bilateral trade data between India and her seven major trading partners. No significant relation was found between the real exchange rate and the bilateral trade balance between India and her major partner, the U.S. In this paper we disaggregate the trade data between India and the U.S. at industry level and use trade data from 38 industries to show that in most industries while real depreciation of the rupee has short-run effects, the short-run effects last into the long run in almost half of these industries.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Rajarshi Mitra, 2009. "The J-Curve at the industry level: evidence from U.S.-India trade," Economics Bulletin, AccessEcon, vol. 29(2), pages 1520-1529.
    • Handle: RePEc:ebl:ecbull:eb-09-00308
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    References listed on IDEAS

    as
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    13. Mohsen Bahmani-Oskooee & Claire Economidou & Gour Gobinda Goswami, 2005. "How sensitive are Britain's inpayments and outpayments to the value of the British pound," Journal of Economic Studies, Emerald Group Publishing, vol. 32(5), pages 455-467, October.
    14. Mohsen Bahmani-Oskooee & Artatrana Ratha, 2004. "The J-Curve: a literature review," Applied Economics, Taylor & Francis Journals, vol. 36(13), pages 1377-1398.
    15. Swarnjit Arora & Mohsen Bahmani-Oskooee & Gour Goswami, 2003. "Bilateral J-curve between India and her trading partners," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1037-1041.
    16. Glauco De Vita & Khine S. Kyaw, 2008. "Determinants of capital flows to developing countries: a structural VAR analysis," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 35(4), pages 304-322, September.
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    19. James E. Payne, 2008. "Inflation and inflation uncertainty: evidence from the Caribbean region," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 35(6), pages 501-511, October.
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    Cited by:

    1. Mohsen Bahmani-Oskooee & Salman Huseynov & Rustam Jamilov, 2014. "Is there a J-curve for Azerbaijan? New evidence from industry-level analysis," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 7(1), pages 83-98, March.
    2. Mohsen Bahmani-Oskooee & Rustam Jamilov, 2014. "Export diversification and the S-curve effect in a resource-rich state: evidence from Azerbaijan," Economic Change and Restructuring, Springer, vol. 47(2), pages 135-154, May.
    3. Manoranjan Sahoo, 2018. "Exchange Rate and Service Exports from India: A Nonlinear ARDL Analysis," Economics Bulletin, AccessEcon, vol. 38(2), pages 1090-1101.
    4. Jamilov, Rustam, 2012. "Is There a J-curve for Azerbaijan? Evidence from Industry-Level Analysis," MPRA Paper 39370, University Library of Munich, Germany.
    5. Yu Hsing, 2015. "Determinants of the AUD/USD Exchange Rate and Policy Implications," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(2), pages 326-332, February.

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    More about this item

    Keywords

    Industry Data; India; U.S.; Trade Balance;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • F0 - International Economics - - General

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