Title: Egypt-EU commodity trade and the J-Curve

Authors: Mohsen Bahmani-Oskooee; Amr Sadek Hosny

Addresses: The Center for Research on International Economics, Department of Economics, The University of Wisconsin-Milwaukee, Milwaukee, WI 53201, USA ' The Center for Research on International Economics, Department of Economics, The University of Wisconsin-Milwaukee, Milwaukee, WI 53201, USA

Abstract: Due to data availability, most theories in international economics are tested by using data from developed countries. The J-Curve phenomenon, which summarises the short-run response of the trade balance to currency depreciation, is no exception. Egypt has kept close track of its commodity trade with her major trading partner, the European Union (EU). We use such trade data and test the J-Curve phenomenon for each of the 59 industries that trade between the two regions. Using quarterly data over the period 1994I-2007IV and the bounds testing approach we find support for the phenomenon in 24 out of the 59 industries.

Keywords: J-curve; Egypt; EU; European Union; commodity trade; trade balance; currency depreciation.

DOI: 10.1504/IJMEF.2012.048737

International Journal of Monetary Economics and Finance, 2012 Vol.5 No.2, pp.192 - 209

Available online: 24 Aug 2012 *

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