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.
Keywords: Marshall-Lerner panel, national currency depreciation, trade balance, Romania.
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Contents
- Economic resilience
in Central and Eastern European countries
Elena-Mădălina ZAMFIR (AVRAM)
Georgiana BALABAN
Cosmin MARINESCU
- Romania's economy on the threshold of recession
Constantin ANGHELACHE
Mădălina-Gabriela ANGHEL
Ștefan Virgil IACOB
- Testing the Marshall-Lerner condition for Romania
Ecaterina TOMOIAGA
Monica Ioana POP SILAGHI
- Empirical evidence to the nonmonotonic relationship
between public health expenditure and economic growth
Swapnanil SENGUPTA
- Institutional quality and public healthcare
Kashish TIBREWAL
Saswati CHAUDHURI
- Consequences of the Covid-19 epidemic
on hygiene purchase behavior
Elena Rusalca VELICU
Ovidiu Andrei Cristian BUZOIANU
Carol Cristina GOMBOS
Ana Maria BOLAHAN
- Banking management
in the prism liquidity – profitability interrelation
Valentin PAUNA
Amelia DIACONU
Svetlana PLATAGEA GOMBOS
Raluca Iuliana GEORGESCU
- The impact of foreign direct investment on the economy
of Bangladesh: A time-series analysis
Mohammad Abdullah Al FAISAL
Mohammed Saiful ISLAM
- Does gravity work in the context of India
and ASEAN bilateral trade?
An application of the FGLS method
Saba GULNAZ
Hemlata MANGLANI
- The dynamics of India – ASEAN trade
with special reference to manufactured exports
and their technological composition
Nikhat KHALID
Saba ISMAIL
- How does Israel share Palestinians
their international aid
Mahmoud M. SABRA
- Attention economy and higher-order beliefs
in voters’ online attention searches
Paritosh Chandra SINHA
- Volatility and asymmetric analysis
of Indian indices during Covid-19 pandemic period
S. Shameem BANU
N.S. SHIBU
