Current Account Sustainability in Emerging Markets: An Analysis with Linear and Nonlinear Panel Unit Root Tests

Şeref Bozoklu, Veli Yılancı
1.721 263

Öz


This study examines the sustainability of current account deficits of eight emerging market economies over the period of 1996Q1-2009Q4 by employing linear and nonlinear panel unit root tests along with sequential panel selection method. The results of the linear panel unit root test gives evidence about the stationary for the current accounts of Russia and Indonesia, however nonlinear panel unit root test indicates that only current account of Indonesia is stationary. Therefore, the main contribution of the paper is to indicate the importance of distinguishing the linear and nonlinear adjustment processes in examinging the current account sustainability.


Anahtar kelimeler


Cari Açığın Sürdürülebilirliği, Doğrusal Dışılık, Panel Birim Kök Testleri, Ardışık Panel Seçim Yöntemi.

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