European Current Account Sustainability: New Evidence Based On Unit Roots and Fractional Integration
In this paper we examine current account sustainability for some European countries. However, instead of using classic approaches based on standard I(0)/I(1) procedures, we use other more recent techniques for unit roots along with fractionally integrated methods. Our findings can be summarized as follows: according to the Ng and Perron's (2001) procedure, exports and imports are non-stationary I(1) variables in most of the countries. However, using fractional methods, exports and imports are in most cases I(d) with d>1. With respect to the current accounts, the orders of integration are generally smaller than in the cases of exports and imports, in some cases even smaller than 1, though the unit root cannot be rejected in the majority of the countries. Therefore, we obtain little or no evidence of current account sustainability in the European countries examined.
If 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.
Volume (Year): 36 (2010)
Issue (Month): 2 (Spring)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
Postal:c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
Phone: (201) 684-7346
Web page: https://www.qu.edu/eea/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/41302|
When requesting a correction, please mention this item's handle: RePEc:pal:easeco:v:36:y:2010:i:2:p:177-187. 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: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.