Document Type
Article
Abstract
Following Bahmani-Oskooee and Fariditavana (2016), I use the non-linear autoregressive distributed lag model approach of Shin et al. (2013) to examine the J-curve phenomenon for the Chinese economy. Most recent studies have used methods such as the linear autoregressive distributed lag model approach of Pesaran et al. (2001) which assumes a linear relationship between the exchange rate and the trade balance. I argue that lack of support for the J-curve effect could be due to assuming that effects of exchange rate changes are symmetric. Using a linear autoregressive distributed lag model approach, I am able to find support for the J-curve effect in two out of four models. When using a non-linear autoregressive distributed lag model approach, however, I am able to find support for the J-curve effect in three out of four models.
Publication Date
Spring 2019
Journal Title
Major Themes in Economics
Volume
21
Issue
1
First Page
1
Last Page
13
Copyright
©2019 by Major Themes in Economics
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Language
en
File Format
application/pdf
Recommended Citation
Hunter, Alex
(2019)
"Non-linear Autoregressive Distributed Lag Model Approach and the J-Curve Phenomenon: China and Her Major Trading Partners,"
Major Themes in Economics, 21, 1-13.
Available at:
https://scholarworks.uni.edu/mtie/vol21/iss1/3