The US dollar and trade balance: New findings from the international trade of India with the European Union

References

• Arora, S., Bahmani-Oskooee, M., & Goswami, G. (2003). Bilateral J-curve between India and her trading partners. Applied Economics, 35(9), 1037–20. https://doi.org/10.1080/0003684032000102172
   Web of Science ®Google Scholar
• Baek, J., & Koo, W. W. (2009). Assessing the exchange rate sensitivity of U.S. Bilateral agricultural trade. Canadian Journal of Agricultural Economics, 57(2), 187–203. https://doi.org/10.1111/j.1744-7976.2009.01147.x
   Web of Science ®Google Scholar
• Bahmani-Oskoee, M., & Alse, J. (1994). Short-run versus long-run effects of devaluation: Error-correction modeling and cointegration. Eastern Economic Journal, 20(4), 453–464.
   Google Scholar
• Bahmani-Oskooee, M. (1985). Devaluation and the J-Curve: Some evidence from LDCs. The Review of Economics and Statistics, 67(3), 500–504. https://doi.org/10.2307/1925980
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., & Aftab, M. (2018). Asymmetric effects of exchange rate changes on the Malaysia-China commodity trade. Economic Systems, 42(3), 470–486. https://doi.org/10.1016/j.ecosys.2017.11.004
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., & Baek, J. (2018). Asymmetry cointegration and the J-curve: New evidence from Korean bilateral trade balance models with her 14 partners. Journal of the Asia Pacific Economy, 24(1), 66–81. https://doi.org/10.1080/13547860.2018.1469589
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., & Fariditavana, H. (2015). Nonlinear ARDL approach, asymmetric effects and the J-Curve. Journal of Economic Studies, 42(3), 519–530. https://doi.org/10.1108/JES-03-2015-0042
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., & Fariditavana, H. (2016). Nonlinear ARDL approach and the J-Curve phenomenon. Open Economies Review, 27(1), 51–70. https://doi.org/10.1007/s11079-015-9369-5
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., & Kanitpong, T. (2017). Do exchange rate changes have symmetric or asymmetric effects on the trade balances of Asian countries? Applied Economics, 49(46), 4668–4678. https://doi.org/10.1080/00036846.2017.1287867
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., & Malixi, M. (1992). More evidence on the J-Curve from LDCs. Journal of Policy Modeling, 14(5), 641–653. https://doi.org/10.1016/0161-8938(92)90034-a
   Web of Science ®Google Scholar
• Bahmani-Oskooee, M., & Nasir, M. A. (2020). Asymmetric J-Curve: Evidence from industry trade between U.S. and U.K. Applied Economics, 52(25), 2679–2693. https://doi.org/10.1080/00036846.2019.1693700
   Google Scholar
• Bahmani-Oskooee, M., & Saha, S. (2017). Nonlinear autoregressive distributed lag approach and bilateral J-curve: India versus her trading partners. Contemporary Economic Policy, 35(3), 472–483. https://doi.org/10.1111/coep.12197
   Web of Science ®Google Scholar
• Bao, H. H. G., & Le, H. P. (2021a). Asymmetric impact of exchange rate on trade between Vietnam and each of EU-27 countries and the UK: Evidence from nonlinear ARDL and the role of vehicle currency. Heliyon, 7(6), e07344. https://doi.org/10.1016/j.heliyon.2021.e07344
   PubMed Web of Science ®Google Scholar
• Bao, H. H. G., & Le, H. P. (2021b). The role of vehicle currency in ASEAN-EU trade: A double-aggregation method. The Journal of Asian Finance, Economics & Business, 8(5), 43–52. https://doi.org/10.13106/jafeb.2021.vol8.no5.0043
   Web of Science ®Google Scholar
• Bao, H. H. G., & Le, H. P. (2022a). The application of standard two-country model to analyze the role of vehicle currency and the empirical evidence from Vietnam-Eurozone trade. Studies of Applied Economics, 40(2). https://doi.org/10.25115/eea.v40i2.5990
   Google Scholar
• Bao, H. H. G., & Le, H. P. (2022b). The roles of vehicle currency and real effective exchange rates in the trade of every ASEAN member with the EU-28. SAGE Open, April-June, 2022(2), 1–27. https://doi.org/10.1177/21582440221091715
   Google Scholar
• Bao, H. H. G., Tran, T. H. L., & Le, H. P. (2022). The roles of vehicle currency and real effective exchange rate in China’s trade with the whole EU. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2028974
   Web of Science ®Google Scholar
• Bhat, S. A., & Bhat, J. A. (2021). Impact of exchange rate changes on the trade balance of India: An asymmetric nonlinear cointegration approach. Foreign Trade Review, 56(1), 71–88. https://doi.org/10.1177/0015732520961328
   Web of Science ®Google Scholar
• Boz, E., Casas, C., Georgiadis, G., Gopinath, G., Mezo, H. L., Mehl, A., & Nguyen, T. (2022). Patterns of invoicing currency in global trade: New evidence. Journal of International Economics, 136, 1–16. https://doi.org/10.1016/j.jinteco.2022.103604
   Web of Science ®Google Scholar
• Buluswar, M. D., Thompson, H., & Upadhyaya, K. P. (1996). Devaluation and the trade balance in India: Stationarity and cointegration. Applied Economics, 28(4), 429–432. https://doi.org/10.1080/000368496328551
   Web of Science ®Google Scholar
• Chaudhuri, K. (2005). Is devaluation working? Evidence from India in phase of economic liberalization. Journal of Quantitative Economics, 3(2), 67–81. https://doi.org/10.1007/BF03404626
   Google Scholar
• Chen, H., Hongo, D. O., Ssali, M. W., Nyaranga, M. S., & Nderitu, C. W. (2020). The asymmetric influence of financial development on economic growth in Kenya: Evidence from NARDL. SAGE Open, 10(1), 1–17. https://doi.org/10.1177/2158244019894071
   Web of Science ®Google Scholar
• Dash, A. K. (2013). Bilateral J-Curve between India and her trading partners: A quantitative perspective. Economic Analysis and Policy, 43(3), 315–338. https://doi.org/10.1016/s0313-59261350034-8
   Google Scholar
• European Commission. (2022). Countries and regions–India. https://ec.europa.eu/trade/policy/countries-and-regions/countries/india/
   Google Scholar
• Goldberg, L. S., & Tille, C. (2008). Vehicle currency use in international trade. Journal of International Economics, 76(2), 177–192. https://doi.org/10.1016/j.jinteco.2008.07.001
   Web of Science ®Google Scholar
• Gopinath, G. (2017, December 21). Dollar dominance in trade: Facts and implications. Export-Import Bank of India. https://www.eximbankindia.in/blog/blog-content.aspx?BlogID=9&BlogTitle=Dollar%20Dominance%20in%20Trade:%20Facts%20and%20Implications
   Google Scholar
• Gopinath, G., Boz, E., Casas, C., Díez, F. J., Gourinchas, P. O., & Plagborg-Møller, M. (2020). Dominant currency paradigm. The American Economic Review, 110(3), 677–719. https://doi.org/10.1257/aer.20171201
   Web of Science ®Google Scholar
• Hassan, M. S., Wajid, A., & Kalim, R. (2017). Factors affecting trade deficit in Pakistan, India and Bangladesh. Economia Politica, 34(2), 283–304. https://doi.org/10.1007/s40888-017-0053-7
   Web of Science ®Google Scholar
• Himarios, D. (1989). Do devaluations improve the trade balance? The evidence revisited. Economic Inquiry, 27(1), 143–168. https://doi.org/10.1111/j.1465-7295.1989.tb01169.x
   Web of Science ®Google Scholar
• Islam, F., Tiwari, A. K., & Shahbaz, M. (2016). Indo-US bilateral trade: An empirical analysis of India’s trade balance. The Indian Economic Journal, 64(1&2), 75–94. https://doi.org/10.1177/0019466216653505
   Google Scholar
• Iyke, B. N., & Ho, S. H. (2018). Nonlinear effects of exchange rate changes on the South African bilateral trade balance. The Journal of International Trade & Economic Development, 27(3), 350–363. https://doi.org/10.1080/09638199.2017.1378916
   Web of Science ®Google Scholar
• Krugman, P. (1980). Vehicle currencies and the structure of international exchange. Journal of Money, Credit and Banking, 12(3), 513–526. https://doi.org/10.2307/1991725
   Web of Science ®Google Scholar
• Lal, A. K., & Lowinger, T. C. (2002). Nominal effective exchange rate and trade balance adjustment in South Asia countries. Journal of Asian Economics, 13(3), 371–383. https://doi.org/10.1016/s1049-00780200120-3
   Google Scholar
• Lerner, A. P. (1944). The economics of control: Principles of welfare economics. Macmillan.
   Google Scholar
• Liang, C. C., Troy, C., & Rouyer, E. (2019). U.S. uncertainty and Asian stock prices: Evidence from the asymmetric NARDL model. The North American Journal of Economics & Finance, 51, 1–26. https://doi.org/10.1016/j.najef.2019.101046
   Web of Science ®Google Scholar
• Magee, S. P. (1973). Currency contracts, pass through and devaluation. Brookings Papers on Economic Activity, 1(1), 303–325. https://doi.org/10.2307/2534091
   Google Scholar
• Marshall, A. (1923). Money, credit and commerce. Macmillan.
   Google Scholar
• Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979–1990. https://doi.org/10.1080/00036840500278103
   Web of Science ®Google Scholar
• Nusair, S. A. (2017). The J-Curve phenomenon in European transition economies: A nonlinear ARDL approach. International Review of Applied Economics, 31(1), 1–27. https://doi.org/10.1080/02692171.2016.1214109
   Web of Science ®Google Scholar
• Odhiambo, N. M. (2009). Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach. Energy Policy, 37(2), 617–622. https://doi.org/10.1016/j.enpol.2008.09.077
   Web of Science ®Google Scholar
• Pesaran, M., Shin, Y., & Smith, R. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
   Web of Science ®Google Scholar
• Rahman, Z. U., & Ahmad, M. (2019). Modeling the relationship between gross capital formation and CO2 (a)symmetrically in the case of Pakistan: An empirical analysis through NARDL approach. Environmental Science and Pollution Research, 26(8), 8111–8124. https://doi.org/10.1007/s11356-019-04254-7
   PubMed Web of Science ®Google Scholar
• Rajan, R. S., & Yanamandra, V. (2015). Rupee movements and India’s trade balance: Exploring the existence of a J-Curve. In Managing the macroeconomy (pp. 137–173). Palgrave Macmillan UK. https://doi.org/10.1057/9781137534149_5
   Google Scholar
• Rose, A. K. (1991). The role of exchange rates in a popular model of international trade. Does the ‘Marshall-Lerner’ condition hold? Journal of International Economics, 30(3–4), 301–316. https://doi.org/10.1016/0022-19969190024-Z
   Web of Science ®Google Scholar
• Rose, A. K., & Yellen, J. L. (1989). Is there a J-Curve? Journal of Monetary Economics, 24(1), 53–68. https://doi.org/10.1016/0304-39328990016-0
   Web of Science ®Google Scholar
• Shin, Y., Yu, B., & Greenwood-Nimmo, M. (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In R. Sickels & W. Horrace (Eds.), Festschrift in honor of Peter Schmidt: Econometric methods and applications (pp. 281–314). Springer. https://doi.org/10.1007/978-1-4899-8008-3_9
   Google Scholar
• Singh, T. (2002). India’s trade balance: The role of income and exchange rates. Journal of Policy Modeling, 24(5), 437–452. https://doi.org/10.1016/s0161-8938(02)00124-2
   Web of Science ®Google Scholar