Among the 17 regions' trade balance
the difference between trade outflow and inflow was most favorable in NCR at P25.55 billion having registered the greatest commodity outflow among regions.
Data from PSA showed that the region's trade balance
improved from registering a negative performance in the first quarter last year at P649.70 million.
Other regions that had a positive trade balance
were Central Luzon with P7.77 billion; Davao region, P4.77 billion; South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos, or Soccsksargen, P1.2 billion; and the Autonomous Region in Muslim Mindanao, P0.67 billion.
The results also indicate the presence of contemporaneous correlation in the residuals; that is, cross (or between) dependence in exports, imports and trade balances
For a long time, economists have stressed on the relation between exchange rate and trade balance
. However, since the middle of the twentieth century and due to the developments in macroeconomic and econometric analysis, some studies started to present some empirical results.
As for import prices and trade balances
, pass-through was found to be more significant and nearly complete by twelve months.
Note that the more a domestic industry is characterized by a negative trade balance
, the more these qualifications have previously been overcome; that is, negative trade balances
suggest that trade entry distribution advertising barriers have been overcome and that foreign firms have superior efficiency relative to domestic firms.
According to the Mundell-Fleming model, changes in the budget deficit trigger changes in the real interest rate, the real exchange rate, and the level of real income, which in turn alter the trade balance
. Others, believing in the real-world relevance of the Ricardian Equivalence Proposition, have argued that the deficits are not really twins, but merely distant cousins, if not entirely unrelated.
DO DEVALUATIONS IMPROVE THE TRADE BALANCE
? THE EVIDENCE REVISITED
Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In terms of favorable trade balance
, however, Eastern Visayas registered the highest positive trade balance
during the third quarter at P16.94 billion as outflows exceeded inflows.
In particular and thanks to their property of measuring the degree of disequilibrium among trade flows, the normalized trade balances
are also used to evaluate the relative intensity of interindustry versus intraindustry trade specialization: the more such balances approach zero, the more exports tend to equal imports of the same product and the more one can claim to be in the presence of sizeable intraindustry trade phenomena [Balassa, 1966].
In order to shed light on whether the Chinese trade surplus can be reduced through exchange rate policy, numerous empirical studies have examined the sensitivity of China's trade balance
to movements in the real effective exchange rate of the renminbi in a multivariate context.