Exploring the Existence of J-Curve in South Asian Countries: An Empirical Analysis

Authors

Roeela Kausar Roeela Kausar Other articles by this author , Sidra Ilyas Sidra Ilyas Other articles by this author , Shehreen Gul Shehreen Gul Corresponding author Email addressshereenull@gmail.com Other articles by this author

https://doi.org/10.36923/jcmi.v3i1.475

Ask AI (Dimensions) Download PDF

Abstract

The core purpose of the present study is to investigate the impact of exchange rate devaluation on the trade balance of South Asian countries. For capturing the performance of Maldives, Bhutan, Pakistan, Nepal, Bangladesh, Sri Lanka, and India's economy, the study involves some leading economic measures like Trade Balance, Foreign Direct Investment, Exchange rate, Gross Domestic Product, and Inflation. The study made use of Panel data from the period 1980 to 2020. The study involved the Fix effect Model framework for the investigation of the J-Curve phenomenon. On behalf of the research, the study recommended some valuable suggestions for the betterment of the above-mentioned economies. Governments must implement regulations that encourage investors to utilize investment effectively and efficiently, upgrade technology, or switch to innovative or demand-friendly exports.

Article information

Keywords
Trade Balance, Exchange Rate, Exchange Rate Square, South Asian Economies
Section
Articles
Issue
Vol. 3 No. 1 (2022)
Submitted
October 12, 2022
Published
June 30, 2022
Corresponding author
Shehreen Gul
Check for updates
Check for updates