Cheng, Ka Ming and Kim, Hyeongwoo and Thompson, Henry (2009): The Exchange Rate and US Tourism Balance of Trade.
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This paper investigates evidence on the effect of dollar depreciation on the US tourism balance of trade. Export revenue and import spending functions are estimated separately with structural vector autoregressive methods to better capture the dynamic adjustment to exchange rate shocks. Quarterly data cover the period of floating exchange rates from 1973 through 2007. Depreciation raises long term US export revenue but there is no effect on import spending.
|Item Type:||MPRA Paper|
|Original Title:||The Exchange Rate and US Tourism Balance of Trade|
|Keywords:||balance of trade; exchange rate; tourism; structural vector autoregressive model; J-curve|
|Subjects:||C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C32 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
F - International Economics > F1 - Trade > F10 - General
|Depositing User:||Dr. Hyeongwoo Kim|
|Date Deposited:||03. Nov 2009 03:11|
|Last Modified:||12. Feb 2013 18:49|
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