IDEAS home Printed from https://ideas.repec.org/a/eme/jespps/v39y2012i6p697-708.html
   My bibliography  Save this article

Exchange rate effects on trade in services

Author

Listed:
  • Charalambos Pattichis

Abstract

Purpose - The purpose of this paper is to use disaggregated data on US‐UK trade to investigate the effects of exchange rate depreciation on trade in services both in the short‐ and long‐run. Design/methodology/approach - The paper focuses on the three traditional categories of internationally traded services – travel, passenger fares and other transportation services – and employs the “bounds” testing procedure advanced by Pesaran, Shin and Smith to investigate the J‐curve effect. Findings - The results reveal that the real exchange rate has a statistically significant effect on trade in services in at least one of the time periods. The results also provide some support for the J‐curve effect. Practical implications - Empirical evidence on the J‐curve provides policymakers with valuable information about the effects of currency depreciation on the trade balance. Originality/value - To the best of the author's knowledge this is the first paper to investigate the J‐curve effect using data on trade in services.

Suggested Citation

  • Charalambos Pattichis, 2012. "Exchange rate effects on trade in services," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 39(6), pages 697-708, October.
    • Handle: RePEc:eme:jespps:v:39:y:2012:i:6:p:697-708
    DOI: 10.1108/01443581211274629
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/01443581211274629/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/01443581211274629/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/01443581211274629?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferda Halicioglu & Natalya Ketenci, 2018. "Testing the productivity bias hypothesis in Middle East countries," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 45(5), pages 922-931, October.
    2. Nasir, Muhammad Ali & Vo, Xuan Vinh, 2020. "A quarter century of inflation targeting & structural change in exchange rate pass-through: Evidence from the first three movers," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 42-61.
    3. Ferda Halıcıoğlu & Kasım Eren, 2017. "Testing Twin Deficits and Saving-Investment Nexus in Turkey," Yildiz Social Science Review, Yildiz Technical University, vol. 3(1), pages 35-46.
    4. Nathan Audu & Titus Obiezue, 2022. "Exchange Rate and Trade in Services Nexus in Nigeria: A Non-Linear ARDL Approach," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 8(1), pages 79-96, January.
    5. Mohsen Bahmani-Oskooee & Huseyin Karamelikli, 2021. "Asymmetric J-curve: evidence from UK-German commodity trade," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(4), pages 1029-1081, November.
    6. Mohsen Bahmani‐Oskooee & Huseyin Karamelikli, 2021. "Estimating a bilateral J‐curve between the UK and the Euro area: An asymmetric analysis," Manchester School, University of Manchester, vol. 89(2), pages 223-237, March.
    7. Ka Ming Cheng, 2021. "Financial And Insurance Services Trade: Does Exchange Rate Or Income Matter?," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 494-509, January.
    8. Andrew Ojede, 2015. "Exchange Rate Shocks and U.S. Services and Agricultural Exports: Which Export Sector is More Affected?," The International Trade Journal, Taylor & Francis Journals, vol. 29(3), pages 228-250, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:39:y:2012:i:6:p:697-708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.