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

See all articles by Hicham Sadok

Hicham Sadok

Mohammed V University of Rabat

Date Written: February 13, 2018

Abstract

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

Sadok, Hicham, The Effect of Exchange Rates on Trade Balance: An Empirical Study of Morocco (February 13, 2018). J. Bus. Econ. Review 3 (1) 01 – 10 (2018), Available at SSRN: https://ssrn.com/abstract=3151335

Hicham Sadok (Contact Author)

Mohammed V University of Rabat ( email )

Avenue Al Oumam
Agdal
Rabat, Rabat 10500
Morocco

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