Advanced Search
MyIDEAS: Login to save this article or follow this journal

Sustainability of External Imbalances for 22 Least Developed Countries: An Empirical Investigation

Contents:

Author Info

  • Tuck Cheong Tang
  • Russell Smyth

Abstract

This study empirically examines the sustainability of external imbalances in 22 least developed countries as classified by the World Bank. The study uses the real trade balance series, which captures more precisely the behavior of the external balance. It examines the stationarity of the real trade balance series rather than testing for cointegration between exports and imports. By employing unit root tests with level shifts, it finds that external imbalances in eight of the countries are sustainable. The implications of the findings are that the countries for which the null of unit root is rejected (i) do not violate their international budget constraint; their short-run imbalances are temporary and are sustainable in the long run, and (ii) the macroeconomic policies are effective in causing the exports and imports to converge in the long run.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by IUP Publications in its journal The IUP Journal of Applied Economics.

Volume (Year): VII (2008)
Issue (Month): 3 (May)
Pages: 50-60

as in new window
Handle: RePEc:icf:icfjae:v:07:y:2008:i:3:p:50-60

Contact details of provider:

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:icf:icfjae:v:07:y:2008:i:3:p:50-60. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.