A new approach to examining the sustainability of external imbalances: the case of Japan
AbstractThis study aims to solve the puzzle of the conventional practice of examining the sustainability of external accounts by initially looking for cointegration between imports and exports. This study proposes a new approach to examine this thesis using unit root tests (with unknown break date) on trade balance series rather than testing the cointegration relationships between imports and exports. In contrast to previous findings, this study has shown empirically that Japan's trade balances are unsustainable. This finding has important policy implications for Japan's external accounts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 13 (2006)
Issue (Month): 5 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ayla Ogus & Niloufer Sohrabji, 2008.
"Intertemporal solvency of Turkey’s current account,"
0805, Izmir University of Economics.
- Ayla Oğuş Binatli & Niloufer Sohrabji, 2012. "Intertemporal Solvency of Turkey’s Current Account," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 59(1), pages 89-104, March.
- Mark J. Holmes & Theodore Panagiotidis & Abhijit Sharma, 2007.
"The sustainability of India’S current account,"
Discussion Paper Series
2007_05, Department of Economics, University of Macedonia, revised Dec 2007.
- Dumitriu, Ramona & Stefanescu, Răzvan, 2013. "Romanian current account sustainability after the adhesion to European Union," MPRA Paper 51244, University Library of Munich, Germany, revised 05 Apr 2013.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.