Please use this identifier to cite or link to this item: https://doi.org/10.1016/S1049-0078(01)00072-0
Title: Exchange rates and the trade balance: The case of Singapore 1970 to 1996
Authors: Wilson, P. 
Tat, K.C.
Keywords: Exchange rate
J-curve
Trade balance
Issue Date: Mar-2001
Source: Wilson, P., Tat, K.C. (2001-03). Exchange rates and the trade balance: The case of Singapore 1970 to 1996. Journal of Asian Economics 12 (1) : 47-63. ScholarBank@NUS Repository. https://doi.org/10.1016/S1049-0078(01)00072-0
Abstract: The purpose of this paper is to examine the relationship between the real trade balance and the real exchange rate for bilateral trade in merchandise goods between Singapore and the USA on a quarterly basis over the period 1970 to 1996 using the partial reduced form model of Rose and Yellen (1989). We also hope to shed further light on what has become known as the 'Singapore export puzzle': the observation that, despite periods of rapid nominal and real appreciation of the Singapore dollar, export growth in aggregate has remained buoyant. Our findings suggest that the real exchange rate does not have a significant impact on the real bilateral trade balance for Singapore and the USA, thus confirming previous work which finds a weak relationship between changes in the exchange rate and changes in export and import prices and volumes for Singapore. We also found little evidence of a J-curve effect. Although positive coefficients linking real exports with lagged values of the real exchange rate might be indicative of 'small country' pricing by exporters in U.S. dollars, it is not clear that this is masking J-curve effects from an initial rise in import values as the home currency depreciates. © 2001 Elsevier Science Inc.
Source Title: Journal of Asian Economics
URI: http://scholarbank.nus.edu.sg/handle/10635/129335
ISSN: 10490078
DOI: 10.1016/S1049-0078(01)00072-0
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

25
checked on Feb 21, 2018

Page view(s)

11
checked on Feb 24, 2018

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.