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Current Account Balance in Emerging Asia


  • Kivanç Halil Ariç

    (Sivas Cumhuriyet University, Faculty of Economics and Administrative Sciences, Department of International Trade and Logistics, Sivas, Turkey)

  • Siok Kun Sek

    (School of Mathematical Sciences, Universiti Sains Malaysia 11800 Minden, Penang, Malaysia)

  • Miguel Rocha de Sousa

    (Department of Economics; Center for Research in Advanced Studies in Management and Economics (CEFAGE); Research Center in Political Science (CICP) Universidade de Évora, Portugal)


The current account balance is an important indicator which reveals information on a country’s economic situation such as investments, capital flows, and indebtedness. The main purpose of this study is to examine the current account balance conditions in emerging Asian countries. In this respect, the long-run and causality relationship between current account balance, economic growth, government expenditure, real interest rates, and foreign direct investment was examined. The panel data analysis was applied using the data dated 1986 to 2015. Our results revealed a causal effect from economic growth and government expenditure to current account balance mainly dependent on saving tendency.

Suggested Citation

  • Kivanç Halil Ariç & Siok Kun Sek & Miguel Rocha de Sousa, 2018. "Current Account Balance in Emerging Asia," CEFAGE-UE Working Papers 2018_02, University of Evora, CEFAGE-UE (Portugal).
  • Handle: RePEc:cfe:wpcefa:2018_02

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    More about this item


    Asia; Current Account Balance; Economic growth; Emerging Asia; FDI; Panel Data Cointegration Analysis; Real Interest rates.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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