Purpose – Political risk factors play a pivotal role in determining the bilateral trade flow of Asian countries in general and the Association for Southeast Asian Nations (ASEAN) countries in particular. The main purpose of this research paper is to examine the impact of disaggregated...

ABSTRACTThis study examines the role of political risk in deterring China’s trade flowwith her 132 trading partners with particular attention to the Associationof Southeast Asian Nations (ASEAN) and the Middle East and North African(MENA) countries for 1984-2015 in the Belt Road Initiative...

The primary purpose of this article is to conduct the Fourier Nonlinear Unit Root Test to check Purchasing Power Parity (PPP) for seven cryptocurrencies traded in seventeen countries from 2010 to 2021. The unit root test provides moderate support to the PPP hypothesis when we use each...

Previous research that investigated the relationship between the black market and the official exchange rate employed cointegration analysis to establish the long-run relationship and Granger causality to detect the short-run causality between the two rates (for a small number of countries). In...

In a recent article, with a strong theoretical argument but poor empiricalsupport, military spending was identified to be a determinant of realexchange rate or a factor causing the PPP to deviate from equilibriumexchange rate. The poor empirical results were mostly due to a small numberof...

Bilateral real exchange rate is used in examining the price of domestic goods in terms of partner's goods and it is especially useful for bilateral modelling. On the other hand, real effective exchange rate serves as the price of domestic goods in terms of a basket of foreign goods and is...

Currency depreciation is said to worsen the trade balance first before resulting in an improvement, yielding a short-run pattern labelled the J-curve phenomenon. While early studies tested the J-curve by using aggregate trade data, a few recent studies have employed bilateral data,mostly between...

According to the productivity bias hypothesis countries have a tendency for real appreciation in their domestic currency as a result of a productivity shock and the tendency is more pronounced in the non-tradable sectors. Balassa (1964) examines this thesis for 12 OECD countries in a cross...

Debt Sustainability Analysis (DSA) conducted by the multilateral organizations like the World Bank and IMF falls under the domain of Judgmental Projection reflecting their views or judgment about the economy. The study incorporates time series forecast using ARIMA method to analyze debt...

In empirically validating the Heckscher-Ohlin (H-O) model of trade, the preponderant majority of the literature has concentrated on the net factor content of trade. Contrastingly, by utilizing an industrial-level data set of nine OECD countries, this paper applies data envelopment analysis...