Original Research

The exchange rate, the trade balance and the J-curve effect in South Africa

Eric Schaling, Alain Kabundi
South African Journal of Economic and Management Sciences | Vol 17, No 5 | a727 | DOI: https://doi.org/10.4102/sajems.v17i5.727 | © 2014 Eric Schaling, Alain Kabundi | This work is licensed under CC Attribution 4.0
Submitted: 23 August 2013 | Published: 28 November 2014

About the author(s)

Eric Schaling, Wits Business School, South Africa
Alain Kabundi, SA Reserve Bank, South Africa

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Abstract

We find that for the period 1994-2011 there is robust statistical evidence that, in the long run, net exports are boosted by a weaker real effective exchange rate. However, this effect does not hold in the short run. We thus find empirical evidence supporting the J-curve effect for South Africa.


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