IDEAS home Printed from https://ideas.repec.org/a/taf/nzecpp/v48y2014i1p40-52.html
   My bibliography  Save this article

The S-curve dynamics of trade between the US and Korea: Evidence from commodity trade

Author

Listed:
  • Mohsen Bahmani-Oskooee
  • Jia Xu

Abstract

The S-curve hypothesis in international economics postulates that while cross-correlation coefficients between past values of a country's trade balance and its current exchange rate may be negative, the same coefficients between future values of the trade balance and the current exchange rate may be positive. Previous research has tested and ultimately supported this hypothesis for Korea by using aggregate trade flows. In this paper we consider the trade between Korea and the US and disaggregate their trade flows by industry. We then test the S-curve at the commodity level to identify industries that will benefit from currency depreciation. Out of 74 industries examined, 39 enjoyed the S-curve pattern, including the three largest industries that account for more than 30% of the trade between the two countries.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Jia Xu, 2014. "The S-curve dynamics of trade between the US and Korea: Evidence from commodity trade," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(1), pages 40-52, April.
    • Handle: RePEc:taf:nzecpp:v:48:y:2014:i:1:p:40-52
    DOI: 10.1080/00779954.2013.792717
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00779954.2013.792717
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00779954.2013.792717?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. Javed Iqbal & Sareer Ahmad & Misbah Nosheen & Mark Wohar, 2023. "Empirical investigation of the S-curve phenomenon in Pakistan-China commodity trade," Economics Bulletin, AccessEcon, vol. 43(4), pages 1853-1864.
    2. Nabeela KOUSAR* & Muhammad Rizwan YASEEN** & Imran QAISER***, 2017. "THE S-CURVES DYNAMICS OF TRADE: The Case Study of Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 27(1), pages 121-138.

    More about this item

    Statistics

    Access and download statistics

    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:taf:nzecpp:v:48:y:2014:i:1:p:40-52. 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: the person in charge (email available below). General contact details of provider: http://www.tandfonline.com/RNZP20 .

    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.