Kazakhstan trade with its partners and the role of tenge: an asymmetric analysis

Mohsen Bahmani-Oskooee, Hanafiah Harvey, Amr Hosny

Research output: Contribution to journalArticle

Abstract

Previous research has shown that lack of any short-run and long-run relationship between the trade balance and the exchange rate could be due to ignoring non-linear adjustment of the exchange rate. In this paper, we introduce non-linearity of the exchange rate adjustment and consider the asymmetric response of Kazakhstan’s trade balance with each of its 13 trading partners. While we find short-run asymmetric response in almost all 13 models, short-run asymmetric effects translate into the long run only in the trade with Austria, China, France, and the U.S. Only in the trade with France a tenge depreciation had favorable long-run effects.

Original languageEnglish (US)
Pages (from-to)493-513
Number of pages21
JournalEurasian Economic Review
Volume9
Issue number4
DOIs
StatePublished - Dec 1 2019

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All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

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