Artikel

The Effects of Exchange Rate Change on the Trade Balance of Slovakia

This paper empirically investigates the impact of change in exchange rate on export and import flows between Slovakia and its major trading partners. Devaluation or depreciation of a currency worsens the trade balance before improving it, resulting in a J-curve pattern. For the purpose of this paper, aggregated and disaggregated approaches are used. This paper investigates J-curve phenomenon using quarterly time series data over the period 1997:1 to 2013:4. The results provide evidence that the classical J-curve effect does not exist in Slovakia on the aggregated level. Instead, currency depreciation (increase in real effective exchange rate) is accompanied only by positive change in trade balance with no deterioration under initial value. On the bilateral level, there exists J- curve in trade with Hungary.

Language
Englisch

Bibliographic citation
Journal: European Financial and Accounting Journal ; ISSN: 1805-4846 ; Volume: 9 ; Year: 2014 ; Issue: 3 ; Pages: 50-66 ; Prague: University of Economics, Faculty of Finance and Accounting

Classification
Management
Trade: General
Empirical Studies of Trade
Foreign Exchange
Subject
Trade balance
J-curve
International trade
Exchange rate
Cointegration

Event
Geistige Schöpfung
(who)
Šimáková, Jana
Event
Veröffentlichung
(who)
University of Economics, Faculty of Finance and Accounting
(where)
Prague
(when)
2014

DOI
doi:10.18267/j.efaj.124
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Šimáková, Jana
  • University of Economics, Faculty of Finance and Accounting

Time of origin

  • 2014

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