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The second J-curve and trade account dynamics

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  • Mark Roberts

Abstract

A second and an independent J-curve effect emerges where import expenditures depend on wealth and where current account imbalance feeds back on itself through its effect on asset accumulation. The combination of the two J-curves in conjunction gives rise to a wide range of dynamic possibilities for the trade account.

Suggested Citation

  • Mark Roberts, 1995. "The second J-curve and trade account dynamics," Applied Economics Letters, Taylor & Francis Journals, vol. 2(2), pages 31-33.
    • Handle: RePEc:taf:apeclt:v:2:y:1995:i:2:p:31-33
    DOI: 10.1080/135048595357645
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    Cited by:

    1. Elif Akbostanci, 2002. "Dynamics of the trade balance: The Turkish J-curve," ERC Working Papers 0205, ERC - Economic Research Center, Middle East Technical University, revised May 2002.
    2. Roberts, Mark A. & McCausland, W. David, 1999. "Multiple international debt equilibria and irreversibility," Economic Modelling, Elsevier, vol. 16(2), pages 179-188, April.

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