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Analysis Of The Current Account Position Of Four Asian Countries Before The 1997 Crisis

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  • B. Andreosso‐O’Callaghan
  • Denis Kan

Abstract

. The current paper presents an empirical analysis of the current account positions during the pre Asian crisis period, in the four most crisis‐hit countries (namely Thailand, the Philippines, South Korea and Indonesia). We have employed the procedures advocated by Husted for the presence of stationarity in current accounts by estimating a cointegration relationship between any country's exports and imports. The results do not substantiate the presence of cointegration between the series, implying that the macroeconomic fundamentals in these countries prior to the crisis were far from robust, at least from the perspective of current account sustainability.

Suggested Citation

  • B. Andreosso‐O’Callaghan & Denis Kan, 2007. "Analysis Of The Current Account Position Of Four Asian Countries Before The 1997 Crisis," Pacific Economic Review, Wiley Blackwell, vol. 12(1), pages 47-61, February.
    • Handle: RePEc:bla:pacecr:v:12:y:2007:i:1:p:47-61
    DOI: 10.1111/j.1468-0106.2007.00339.x
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    References listed on IDEAS

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    Cited by:

    1. Ahmad Zubaidi Baharumshah & Hamizun Bin Ismail, 2012. "The present value model and Thailand's current account balance," Journal of Economic Studies, Emerald Group Publishing, vol. 39(3), pages 337-355, December.
    2. Augustine C. Arize & Mohsen Bahmani-Oskooee, 2018. "Do Imports and Exports Adjust Nonlinearly? Evidence from 100 Countries," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 18(1), pages 1-30.

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