Almost 73% of trade between Egypt and the USA involves the 36 industries for which continuous quarterly data are available over the period 1994I to 2007IV. We take advantage of this rich data set and test the J-curve hypothesis for each of the 36 industries. By relying upon a new definition of...

The 'S-Curve' phenomenon postulates that while cross correlation coefficients between past values of the trade balance and current exchange rate could be negative, the same cross-correlation between future values of the trade balance and current exchange rate could be positive. In this study, we...