| ID | 095927 |
| Title Proper | S-Curve dynamics of trade between U.S. and China |
| Language | ENG |
| Author | Bahmani-Oskooee, Mohsen ; Ratha, Artatrana |
| Publication | 2010. |
| Summary / Abstract (Note) | A newly emerging area in international economics looks at the cross-correlation coefficient between past and future values of the trade balance and movement in the current exchange rate as a way of analyzing the response of the trade balance to exchange rate changes. Since the cross-correlation function follows a symmetric pattern, it comes under the heading of the S-Curve. Previous studies have considered the experience of developed and developing countries with the S-Curve, excluding China. In this paper we consider the Chinese experience. We show that when aggregate trade data between China and the U.S. are considered, there is no evidence of the S-Curve. However, when the data are disaggregated by commodity, the S-Curve is supported in almost 50% of the close to 100 industries considered. Furthermore, it appears that commodity types do not have any influence in determining the existence of an S-Curve pattern. |
| `In' analytical Note | China Economic Review Vol. 21, No. 2; Jun 2010: p. 212-223 |
| Journal Source | China Economic Review Vol. 21, No. 2; Jun 2010: p. 212-223 |
| Key Words | S-Curve ; Commodity Trade ; China ; U S |