Is there a J-curve in the bilateral trade between Sweden and Germany? -A Product Level Study-
The J-curve illustrates an initially negative effect of an exchange rate depreciation on the trade balance with improvement following in later periods. This paper investigates whether there is a J-curve in the bilateral trade between Sweden and Germany on a 3-digit SITC product group level. The ARDL bounds testing approach is employed to circumvent issues such as the bad small sample properties of
