Mofid University The Journal of Economic Studies and Policies 2423-4648 0 20 2011 12 22 Testing J and S Curves in the Case of Iran (1976-2007) (J Curve and S Curve Approaches) Testing J and S Curves in the Case of Iran (1976-2007) (J Curve and S Curve Approaches) 3 20 26195 10.22096/esp.2011.26195 FA Alireza Kazerooni Professor of Economics, University of Tabriz Siavash Mohammadpoor Master student of Economics, University of Tabriz Majid Feshari PhD student in Economics, University of Tabriz Journal Article 2010 12 22 The main objective of this paper is to investigate the effect of currency devaluation on the trade balance of Iran by using J and S curve approaches over the period of 1976-2007. <br />For this purpose, we used the Johansen’s co-integration approach and impulse response function for the long run and short run analysis, respectively. <br />The empirical results reveal that currency devaluation has a negative effect on the Iranian trade balance in long run as well as short run and reject the J and S curves hypothesis for Iran. Overall the empirical findings of the J and S suggest that the trade balance of Iran does not improve as a result of currency devaluation. The main objective of this paper is to investigate the effect of currency devaluation on the trade balance of Iran by using J and S curve approaches over the period of 1976-2007. <br />For this purpose, we used the Johansen’s co-integration approach and impulse response function for the long run and short run analysis, respectively. <br />The empirical results reveal that currency devaluation has a negative effect on the Iranian trade balance in long run as well as short run and reject the J and S curves hypothesis for Iran. Overall the empirical findings of the J and S suggest that the trade balance of Iran does not improve as a result of currency devaluation. https://economic.mofidu.ac.ir/article_26195_db1f6a0fc31f5666393cd306d561885f.pdf