The J‐ and S‐curves: a survey of the recent literature

Abstract

Purpose

Since the introduction of the concepts of the J‐ and S‐curves, many researchers have tried to verify their validity empirically. This paper aims to review the related papers and to offer direction for future research.

Design/methodology/approach

This is a review paper. As such, no method is employed here. Rather, the methodologies used by others to test the J‐ and S‐curves are explained and reviewed.

Findings

No new findings are offered since this is a review paper.

Practical implications

The J‐ and S‐curves show whether currency depreciation worsens the trade balance first before improving it. Since the majority of studies are country‐specific, policymakers could benefit by learning whether currency depreciation will be effective in improving the trade balance.

Originality/value

This is a literature review paper and its originality is in terms of collecting the literature together and presenting it in one single paper.

Citation

Bahmani‐Oskooee, M. and Hegerty, S.W. (2010), "The J‐ and S‐curves: a survey of the recent literature", Journal of Economic Studies, Vol. 37 No. 6, pp. 580-596. https://doi.org/10.1108/01443581011086639