Testing the short-and-long-run exchange rate effects on
the trade balance : the case of Colombia

Rincón-Castro, Hernán

Testing the short-and-long-run exchange rate effects on the trade balance : the case of Colombia

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No. 35. Junio, 1999. Pág.: 87-121.

Date published

1999-06-01

Date

1999-06

Authors

Rincón-Castro, Hernán

ISSN

0120-4483

Document language

eng

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Las opiniones contenidas en el presente documento son responsabilidad exclusiva de los autores y no comprometen al Banco de la República ni a su Junta Directiva.

The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors.

Description

This paper examines the role of the Exchange rate in determining the short and long run trade balance behavior for Colombia testing the BRM and ML conditions, and the J-curve hypothesis. It uses a regression model formulation which includes income and money so that the monetary and absorption approaches to the balance of payments are also examined.