IS IT REAL - THE LONG-RUN RELATION BETWEEN TERMS OF TRADE AND CURRENTACCOUNT DEFICITS - THE IVORY EVIDENCE

The long-run relationship between current account deficits, domestic i ncome, foreign income and foreign interest rates are estimated based o n Ivorian time series data. The empirical results suggest that terms o f trade along with domestic income, French income, and foreign real in terest rates have significant long-term relationships with the current account deficit. The methodology is based on the co-integration techn ique. In addition, using the bootstrap technique for unit roots and re gression respectively indicates the long-run relationship and the regr ession equation appear robust.