المستخلص: |
The research' aims to measure and analyze the effect of devaluation the real exchange rate on the balance of trade deficit in the Egyptian economy during the period (1985- 2015), and the analysis of the expected relationship between the number of explanatory include foreign income trading partners, government spending, consumer spending family, domestic prices, and the money supply. The research use of Autoregress ive Distributed Lag Bounds test approach (ARDL) to test the CO integration, in addition to discussing the nature of the relationship between the variables through variance ctecomposition (VDC) and Impulse Response Function (IRF). The study results indicated that all of Marshal- Lerner condition and the impact of the(J) curve are inapplicable in the case of the Egyptian economy, while there were negative relationship with strong significant effect in the short run, there was a positive relationship between the exchange rate and trade balance in the Iona run but it was insianificant.
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