The Effect of Exchange Rates on Trade Balance: An Empirical Study of Morocco
J. Bus. Econ. Review 3 (1) 01 – 10 (2018)
10 Pages Posted: 10 May 2018
Date Written: February 13, 2018
Objective – This paper aims to examine the relationship between exchange rates and trade balance in Morocco, to investigate whether the Marshall-Lerner condition and J-curve exist.
Methodology/Technique – This paper attempts to identify the relationship between the real exchange rate and trade balance in Morocco between 2000 to 2015.
Findings – Historically, exchange rates have had a strong impact on foreign trade in Morocco.
Novelty – This study concludes that the fluctuation of exchange rates has no notable impact on the rate of foreign trade.
Type of Paper: Empirical.
Keywords: Exchange Rates; Trade Balance; Exports; Imports; Morocco
JEL Classification: D51; D59
Suggested Citation: Suggested Citation