Theoretical and Applied Economics
No. 1 / 2022 (630), Spring
Testing the Marshall-Lerner condition for Romania
Babes-Bolyai University, Cluj-Napoca, Romania
Monica Ioana POP SILAGHI
Babes-Bolyai University, Cluj-Napoca, Romania
Abstract. In this paper, we test if a depreciation of a national currency will lead to an improvement of the trade balance. We chose the bilateral relationship of Romania and its ten main trading partners. This study will fill the gap in the Romanian literature on this topic in two ways. Firstly, by using a larger data set than it is used in previous studies. The data set consists of panel data for the period 1999-2019. Secondly, by applying a Fully Modified Ordinary Least Square model we test the long-run relationship between the real exchange rate and trade balance. Through the analysis carried out, we obtained the result that a depreciation of the RON will lead to an improvement in the Romanian trade balance.
Contents
Economic resilience in Central and Eastern European countries
Romania's economy on the threshold of recession
Testing the Marshall-Lerner condition for Romania
Empirical evidence to the nonmonotonic relationship between public health expenditure and economic growth
Institutional quality and public healthcare
Consequences of the Covid-19 epidemic on hygiene purchase behavior
Banking management in the prism liquidity – profitability interrelation
Long-term price and income elasticity of residential natural gas demand in Turkey
The impact of foreign direct investment on the economy of Bangladesh: A time-series analysis
Does gravity work in the context of India and ASEAN bilateral trade? An application of the FGLS method
The dynamics of India – ASEAN trade with special reference to manufactured exports and their technological composition
How does Israel share Palestinians their international aid
Attention economy and higher-order beliefs in voters’ online attention searches
Volatility and asymmetric analysis of Indian indices during Covid-19 pandemic period