Empirical evidence of S-curves in the Colombian
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Keywords
Curva S, balanza comercial, tasa de cambio real, Colombia.
Abstract
The Marshall-Lerner condition, the J-curve and S-curve have emerged as theoretical and empirical foundations developed for the study of the interaction between exchange rates and international patterns of bilateral trade. They have a significant bearing on thedevelopment of public policy, and are of equal interest to the academic and professional communities. The most recently developed of these theories, the S-Curve, is named after the theorized short-run behavior to be found in the cross-correlation function of the real exchange rate and the trade balance. Considering this theoretical context, the paper seeks empirical evidence of the existence of the S-Curve in the bilateral trade in commodity and non-commodity goods between Colombia and the United States and Venezuela, its main trading partners, for the yearly quarters between 1994:1 and 2009:4.
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