Effects of Real Exchange Rate on Trade Balance in Cote d’Ivoire: Evidence from Threshold Nonlinear ARDL Model

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dc.contributor.authorKeho, Yaya
dc.date.accessioned2023-05-20T21:21:44Z
dc.date.available2023-05-20T21:21:44Z
dc.date.issued2021-06-17
dc.descriptionTheoretical Economics Letters, Volume 11en_US
dc.description.abstractThe objective of this paper is to shed new light on the nonlinear relationship between real exchange rate changes and trade balance in Cote d’Ivoire. In examining this issue, previous studies have relied on the nonlinear autoregressive distributed lag model developed by Shin et al. (2014) where real exchange rate is decomposed into partial sum of positive and negative changes. They fail to examine the response of the trade balance to extreme changes in the real exchange rate. In order to investigate possible sign and size-dependence in the response of the trade balance to exchange rate, this study uses multiple threshold nonlinear ARDL modeling. The approach is implemented using annual data covering the period 1975-2017. The results reveal that the effects of changes in real exchange rate are asymmetric in both time horizons. More specifically, real exchange rate appreciations deteriorate the trade balance while real depreciations improve it. Further, the effect of large depreciations is higher when compared with large appreciationsen_US
dc.description.sponsorshipACE: Statistics and Quantitative Economicsen_US
dc.identifier.citationKeho, Y. (2021). Effects of Real Exchange Rate on Trade Balance in Cote d’Ivoire: Evidence from Threshold Nonlinear ARDL Model. Theo- retical Economics Letters, 11, 507-521.en_US
dc.identifier.issn2162-2078
dc.identifier.urihttps://doi.org/10.4236/tel.2021.113034
dc.identifier.urihttp://hdl.handle.net/123456789/1852
dc.language.isoenen_US
dc.publisherScientific Research Publishingen_US
dc.subjectNonlinear ARDLen_US
dc.subjectAsymmetryen_US
dc.subjectThe Trade Balanceen_US
dc.subjectThe Exchange Rateen_US
dc.subjectÉcole Nationale Supérieure de Statistique et d'Economie Appliquée d'Abidjan (ENSEA)en_US
dc.subjectSocial/Econ Scienceen_US
dc.titleEffects of Real Exchange Rate on Trade Balance in Cote d’Ivoire: Evidence from Threshold Nonlinear ARDL Modelen_US
dc.typeArticleen_US
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