Do devaluations improve or worsen the terms of trade?
Janardhanan Als
(Division of Business and
Economics, Indiana University‐Southeast, New Albany, Indiana, USA.)
Mohsen Bahmani‐Oskooee
(Department of Economics, The University of Wisconsin‐Milwaukee, Milwaukee, Wisconsin, USA.)
1320
Abstract
Attempts to shed new light on the relation between the terms of trade and effective exchange rate using cointegration analysis and data from 25 countries. Findings could be summarized by saying that there is no long‐run relation between exchange rate and the terms of trade.
Keywords
Citation
Als, J. and Bahmani‐Oskooee, M. (1995), "Do devaluations improve or worsen the terms of trade?", Journal of Economic Studies, Vol. 22 No. 6, pp. 16-25. https://doi.org/10.1108/01443589510099020
Publisher
:MCB UP Ltd
Copyright © 1995, MCB UP Limited