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The role of exchange rates in a popular model of international trade : Does the `Marshall-Lerner' condition hold? Export

Journal of International Economics, Vol. 30, No. 3-4. (May 1991), pp. 301-316.

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This paper examines the empirical relationship between the real effective exchange rate and the aggregate real trade balance for five major OECD countries in the post-Bretton Woods era. A variety of parametric and non-parametric techniques are used. There is little evidence that the exchange rate significantly affects the trade balance.


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