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

  • Mohsen Bahmani-Oskooee
  • Hanafiah Harvey
  • Amr Hosny
Original Paper
  • 8 Downloads

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.

Keywords

Trade balance Exchange rate Asymmetry effects Kazakhstan 13 partners 

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Copyright information

© Eurasia Business and Economics Society 2018

Authors and Affiliations

  • Mohsen Bahmani-Oskooee
    • 1
  • Hanafiah Harvey
    • 2
  • Amr Hosny
    • 3
  1. 1.The Center for Research on International Economics, Department of EconomicsThe University of Wisconsin-MilwaukeeMilwaukeeUSA
  2. 2.Department of EconomicsPennsylvania State University, Mont AltoMont AltoUSA
  3. 3.Strategy Policy and Review DepartmentInternational Monetary FundWashingtonUSA

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