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Long-run relationship with shifts between Mexican current account revenues and expenditures

Author

Listed:
  • Daniel Ventosa-santaulària

    (CIDE)

  • Manuel Gómez-zaldívar

    (Universidad de Guanajuato)

  • Lizet A Pérez

    (CIDE)

Abstract

We study whether there is a long-run relationship between Mexican current account (CA) revenues and expenditures. Our results show that evidence in favor of this claim is drawn only when (at least) three structural break levels are allowed. The CA therefore behaves as a broken-mean stationary process. The shifts in the CA seem to be caused by large and sudden changes in the real exchange rate.

Suggested Citation

  • Daniel Ventosa-santaulària & Manuel Gómez-zaldívar & Lizet A Pérez, 2013. "Long-run relationship with shifts between Mexican current account revenues and expenditures," Economics Bulletin, AccessEcon, vol. 33(2), pages 1317-1327.
    • Handle: RePEc:ebl:ecbull:eb-13-00376
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I2-P124.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Amba Oyon Claude Marius & Taoufiki Mbratana & Kane Gilles Quentin, 2017. "Assessing the current account sustainability in ECCAS economies: A dual cointegration analysis," Economics Bulletin, AccessEcon, vol. 37(3), pages 1873-1894.

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    More about this item

    Keywords

    Current Account; Mexico; Cointegration; Structural Breaks;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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