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Import-content of exports and J-curve effect

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  • Mehmet Yazici
  • Mushtaq Ahmad Klasra

Abstract

This article investigates how the response to devaluation of trade balance is affected, compared to J-curve hypothesis, by the presence of imported inputs in the production of exports. Using first the Almon lag technique and then the cointegration and the generalized impulse response function analysis, the J-curve effect is examined in two sectors of Turkish economy (manufacturing and mining), which use imported inputs at different rates. Based on the data covering the period from the first quarter of 1986 to the third quarter of 1998, our results indicate that in neither sector J-curve exists and that the violation of the J-curve effect is more severe in the sector with higher import content

Suggested Citation

  • Mehmet Yazici & Mushtaq Ahmad Klasra, 2010. "Import-content of exports and J-curve effect," Applied Economics, Taylor & Francis Journals, vol. 42(6), pages 769-776.
    • Handle: RePEc:taf:applec:v:42:y:2010:i:6:p:769-776
    DOI: 10.1080/00036840701720846
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    References listed on IDEAS

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    1. Krueger,Anne O., 1983. "Exchange-Rate Determination," Cambridge Books, Cambridge University Press, number 9780521273015, September.
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    Cited by:

    1. Sevgi SEZER, 2017. "The effects of real exchange rates and income on the trade balance: A second generation panel data analysis for transition economies and Turkey," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(611), S), pages 171-186, Summer.
    2. Mohsen Bahmani‐Oskooee & Niloy Bose & Yun Zhang, 2019. "An asymmetric analysis of the J‐curve effect in the commodity trade between China and the US," The World Economy, Wiley Blackwell, vol. 42(10), pages 2854-2899, October.
    3. Durmus Ozdemir & Mustafa Kemal Gundogdu, 2015. "Simultaneity between export and import flows and the Marshall–Lerner condition: the Turkish case (1998–2013)," Discussion Papers 2015/01, Yasar University, Department of Economics.
    4. Mohsen Bahmani-Oskooee & Huseyin Karamelikli, 2021. "The Turkey-US commodity trade and the asymmetric J-curve," Economic Change and Restructuring, Springer, vol. 54(4), pages 943-973, November.
    5. Mohsen Bahmani-Oskooee & Nazif Durmaz, 2020. "Asymmetric cointegration and the J-curve: evidence from commodity trade between Turkey and EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(4), pages 757-792, November.
    6. Nihan Nur Akhan & Anil Donmez & Refik Erzan & Tolga Umut Kuzubas, 2018. "Exchange Rates and Export Behavior: Firm-level Evidence from Turkey," Working Papers 2018/02, Bogazici University, Department of Economics.

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