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Sustainability of Balancing Item in 18 Industrial Countries Balance of Payments Accounts: An Empirical Study

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  • Tuck Cheong Tang

Abstract

: This study analyzes the sustainability of balancing item (errors and omissions) of balance of payments accounts of 18 industrial countries employing unit root tests with level shifts. Initially, the descriptive summary suggests that the balancing items of the 18 industrial countries are considered to be too big . The results also suggest that balancing items of balance of payments accounts of all the 18 industrial countries are sustainable, except for Iceland, Denmark, Japan, Italy, France and Spain.

Suggested Citation

  • Tuck Cheong Tang, 2008. "Sustainability of Balancing Item in 18 Industrial Countries Balance of Payments Accounts: An Empirical Study," The IUP Journal of Applied Economics, IUP Publications, vol. 0(5), pages 15-25, September.
    • Handle: RePEc:icf:icfjae:v:07:y:2008:i:5:p:15-25
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    Cited by:

    1. Tuck Cheong Tang & Evan Lau, 2008. "An Empirical Investigation On The Sustainability Of Balancing Item Of Balance Of Payment Accounts For Oic Member Countries," Monash Economics Working Papers 31/08, Monash University, Department of Economics.

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