Dynamic Modelling of the Current Accounts: Evidence from the Caribbean
This paper uses time series and pooled data to estimate the current account function of a non-oil developing country (Barbados) and an oil dependent economy (Trinidad and Tobago). The pooled data reveals that the terms of trade (TOT), the government variable (BSGDP), foreign incomes (FGDP), the prime rate and long term capital flows (LTKGDP) are significant variables. The cointegration-error correction model suggests that in Trinidad and Tobago, the exchange rate, BSGDP and FGDP are important explanatory variables; for Barbados, TOT and the BSGDP ratio are influential in the long-run while the latter ratio and LTKGDP are important short run regressors. [F10, F11]
Volume (Year): 11 (1997)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RIEJ20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RIEJ20|
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.:
- Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July.
- Backus, David K., 1993.
"Interpreting comovements in the trade balance and the terms of trade,"
Journal of International Economics,
Elsevier, vol. 34(3-4), pages 375-387, May.
- David K. Backus, 1992. "Interpreting Comovements in the Trade Balance and the Terms of Trade," Working Papers 92-4, New York University, Leonard N. Stern School of Business, Department of Economics.
- Phillips, P.C.B., 1986.
"Testing for a Unit Root in Time Series Regression,"
Cahiers de recherche
8633, Universite de Montreal, Departement de sciences economiques.
- HENRY, David F. & RICHARD, Jean-François, .
"On the formulation of empirical models in dynamic econometrics,"
CORE Discussion Papers RP
502, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hendry, David F. & Richard, Jean-Francois, 1982. "On the formulation of empirical models in dynamic econometrics," Journal of Econometrics, Elsevier, vol. 20(1), pages 3-33, October.
- Phillips, P C B, 1987.
"Time Series Regression with a Unit Root,"
Econometric Society, vol. 55(2), pages 277-301, March.
- Tom Doan, . "PPUNIT: RATS procedure to perform Phillips-Perron Unit Root test," Statistical Software Components RTS00160, Boston College Department of Economics.
- Peter C.B. Phillips, 1985. "Time Series Regression with a Unit Root," Cowles Foundation Discussion Papers 740R, Cowles Foundation for Research in Economics, Yale University, revised Feb 1986.
- Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
- Banerjee, Anindya, et al, 1986. "Exploring Equilibrium Relationships in Econometrics through Static Models: Some Monte Carlo Evidence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 253-77, August.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- Pastor, Manuel Jr., 1989. "Current account deficits and debt accumulation in Latin America: Debate and evidence," Journal of Development Economics, Elsevier, vol. 31(1), pages 77-97, July.
When requesting a correction, please mention this item's handle: RePEc:taf:intecj:v:11:y:1997:i:4:p:39-50. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.