Are current account deficits sustainable? Evidence from panel cointegration

Authors
Wu, JL Chen, SL Lee, HY
Citation
Jl. Wu et al., Are current account deficits sustainable? Evidence from panel cointegration, ECON LETT, 72(2), 2001, pp. 219-224
Citations number
15
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
72
Issue
2
Year of publication
2001
Pages
219 - 224
Database
ISI
SICI code
0165-1765(200108)72:2<219:ACADSE>2.0.ZU;2-Y
Abstract
Conventional cointegration tests fail to consider information across countr ies, which leads to efficiency loss in estimation. In this article we apply panel cointegration tests to examine the cointegration between exports and imports among the G7. Our findings support the sustainability of current a ccounts among major industrial countries, which lends support to the intert emporal approach to the current account. (C) 2001 Elsevier Science BN. All rights reserved.