The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach

This paper investigates the influence of the economic factors on the bilateral balance of trade (TB) of the EU28 zone bio-energy sector outcomes. Concentration is provided to estimate the J-curve hypothesis: whether the bio-energy output trade balance in the European Union region profits from a mini...

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Main Authors: Alsaleh, Mohammed, Abdul Samad @ Iammi, Abdul Rahim
Format: Article
Language:English
Published: Penerbit Universiti Malaysia Terengganu 2019
Online Access:http://psasir.upm.edu.my/id/eprint/22966/
http://psasir.upm.edu.my/id/eprint/22966/1/The%20J-curve%20effects%20and%20the%20EU28%20bioenergy%20trade%20balance%20a%20co-integration%20approach.pdf
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author Alsaleh, Mohammed
Abdul Samad @ Iammi, Abdul Rahim
author_facet Alsaleh, Mohammed
Abdul Samad @ Iammi, Abdul Rahim
author_sort Alsaleh, Mohammed
building UPM Institutional Repository
collection Online Access
description This paper investigates the influence of the economic factors on the bilateral balance of trade (TB) of the EU28 zone bio-energy sector outcomes. Concentration is provided to estimate the J-curve hypothesis: whether the bio-energy output trade balance in the European Union region profits from a minimising of the value of the Euro European (EUR). The study applies the panel-data co-integration test method to regress yearly bilateral TB data of the EU28 regions bio-energy sector productions between 1990 and 2013. To test whether the J-curve effect exists, this research analysed the long-run impact of the real exchange rate (ER) on the level of bioenergy output balance of trade using various estimations; Fully Modified Oriented Least Square (FMOLS), Dummy Oriented Least Square (DOLS), and Pooled Mean Group (PMG) models. The results help the experiential effectiveness of the J-curve by applying FMOLS approach, showing that devaluation has developed the TB of bioenergy outputs. FMOLS analysis does figure demonstration related to the long-term evolution of the bioenergy outputs TB proposed by the J-curve effects. Thus, the results show that the EU28 trade balance of bioenergy has showed the validity of the J-curve manner of modification.
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spelling upm-229662020-04-15T16:16:27Z http://psasir.upm.edu.my/id/eprint/22966/ The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach Alsaleh, Mohammed Abdul Samad @ Iammi, Abdul Rahim This paper investigates the influence of the economic factors on the bilateral balance of trade (TB) of the EU28 zone bio-energy sector outcomes. Concentration is provided to estimate the J-curve hypothesis: whether the bio-energy output trade balance in the European Union region profits from a minimising of the value of the Euro European (EUR). The study applies the panel-data co-integration test method to regress yearly bilateral TB data of the EU28 regions bio-energy sector productions between 1990 and 2013. To test whether the J-curve effect exists, this research analysed the long-run impact of the real exchange rate (ER) on the level of bioenergy output balance of trade using various estimations; Fully Modified Oriented Least Square (FMOLS), Dummy Oriented Least Square (DOLS), and Pooled Mean Group (PMG) models. The results help the experiential effectiveness of the J-curve by applying FMOLS approach, showing that devaluation has developed the TB of bioenergy outputs. FMOLS analysis does figure demonstration related to the long-term evolution of the bioenergy outputs TB proposed by the J-curve effects. Thus, the results show that the EU28 trade balance of bioenergy has showed the validity of the J-curve manner of modification. Penerbit Universiti Malaysia Terengganu 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/22966/1/The%20J-curve%20effects%20and%20the%20EU28%20bioenergy%20trade%20balance%20a%20co-integration%20approach.pdf Alsaleh, Mohammed and Abdul Samad @ Iammi, Abdul Rahim (2019) The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach. Journal of Sustainability Science and Management, 14 (6). pp. 73-87. ISSN 1823-8556; ESSN: 2672-7226 http://jssm.umt.edu.my/wp-content/uploads/sites/51/2020/02/Table-of-Contents-V14N6.pdf
spellingShingle Alsaleh, Mohammed
Abdul Samad @ Iammi, Abdul Rahim
The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach
title The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach
title_full The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach
title_fullStr The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach
title_full_unstemmed The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach
title_short The J-curve effects and the EU28 bioenergy trade balance: a co-integration approach
title_sort j-curve effects and the eu28 bioenergy trade balance: a co-integration approach
url http://psasir.upm.edu.my/id/eprint/22966/
http://psasir.upm.edu.my/id/eprint/22966/
http://psasir.upm.edu.my/id/eprint/22966/1/The%20J-curve%20effects%20and%20the%20EU28%20bioenergy%20trade%20balance%20a%20co-integration%20approach.pdf