The Sustainability of Trade Balances in China
This study uses nonstationary time series approach to test the sustainability of the current account deficits in China over the period from 1982 to 2009. Our empirical results suggest that, despite the cointegrating relationship between imports and exports in China, the intertemporal external constraints may be violated. Thus, the trade balance surplus experienced over the past several years cannot be sustainable in the future. It is therefore necessary to ensure that an effective policy for controlling changes in trade accounts is established.
Volume (Year): 31 (2011)
Issue (Month): 3 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arize, Augustine C., 2002. "Imports and exports in 50 countries: Tests of cointegration and structural breaks," International Review of Economics & Finance, Elsevier, vol. 11(1), pages 101-115, April.
- Shigeyuki Hamori, 2009. "The sustainability of trade accounts of the G-7 countries," Applied Economics Letters, Taylor & Francis Journals, vol. 16(17), pages 1691-1694.
- Ahmad Zubaidi Baharumshah & Evan Lau, 2002.
"On the Sustainability of Current Account Deficits: Evidence from Four ASEAN Countries,"
0062, National University of Ireland Galway, Department of Economics, revised 2002.
- Baharumshah, Ahmad Zubaidi & Lau, Evan & Fountas, Stilianos, 2003. "On the sustainability of current account deficits: evidence from four ASEAN countries," Journal of Asian Economics, Elsevier, vol. 14(3), pages 465-487, June.
- James H. Stock & Mark W. Watson, 1991.
"A simple estimator of cointegrating vectors in higher order integrated systems,"
Working Paper Series, Macroeconomic Issues
91-3, Federal Reserve Bank of Chicago.
- Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
- László Kónya, 2009. "The sustainability of the current account in the Czech Republic, Hungary and Slovenia," Empirical Economics, Springer, vol. 36(2), pages 367-384, May.
- Jyh-lin, Wu & Fountas, Stilianos & Show-lin, Chen, 1996.
"Testing for the sustainability of the current account deficit in two industrial countries,"
Elsevier, vol. 52(2), pages 193-198, August.
- Jyh-lin Wu & Stilianos Fountas & Show-lin Chen, 1996. "Testing for the Sustainability of the Current Account Deficit in Two Industrial Countries," Working Papers 11, National University of Ireland Galway, Department of Economics, revised 1996.
- Aviral Kumar Tiwari, 2011. "Are exports and imports cointegrated in India and China? An empirical analysis," Economics Bulletin, AccessEcon, vol. 31(1), pages 860-873.
- MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999.
"Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 14(5), pages 563-77, Sept.-Oct.
- Mackinnon, J.G. & Haug, A.A. & Michelis, L., 1996. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," G.R.E.Q.A.M. 96a09, Universite Aix-Marseille III.
- James G. MacKinnon & Alfred A. Haug & Leo Michelis, 1996. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Working Papers 1996_07, York University, Department of Economics.
- Wu, Jyh-Lin, 2000. "Mean reversion of the current account: evidence from the panel data unit-root test," Economics Letters, Elsevier, vol. 66(2), pages 215-222, February.
- Husted, Steven, 1992. "The Emerging U.S. Current Account Deficit in the 1980s: A Cointegration Analysis," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 159-66, February.
- Manuchehr Irandoust & Johan Ericsson, 2004. "Are Imports and Exports Cointegrated? An International Comparison," Metroeconomica, Wiley Blackwell, vol. 55(1), pages 49-64, 02.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-11-00453. 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: (John P. Conley)
If references are entirely missing, you can add them using this form.