Title :

Long-run relationship between exports and imports: current account sustainability tests for the EU

Author(s) :

Afonso, Antonio [Auteur]
Huart, Florence [Auteur]
Economie Quantitative, Intégration, Politiques Publiques et Econométrie [EQUIPPE]
Lille économie management - UMR 9221 [LEM]
Jalles, João Tovar [Auteur]
Stanek, Piotr [Auteur]

Journal title :

Portuguese Economic Journal

Publisher :

Springer Verlag

Publication date :

2019-12-20

ISSN :

1617-982X

HAL domain(s) :

Sciences de l'Homme et Société/Economies et finances

English abstract : [en]

We assess the sustainability of external imbalances for EU countries using panel stationarity tests of Current Account (CA) balance-to-GDP ratios and panel cointegration of exports and imports of goods and services, for ...
Show more >We assess the sustainability of external imbalances for EU countries using panel stationarity tests of Current Account (CA) balance-to-GDP ratios and panel cointegration of exports and imports of goods and services, for the period 1970Q1–2015Q4. We find that: i) the country panel is non-stationary; ii) cross-sectional dependence plays an important role; iii) there is non-stationarity of the CA, imports, and exports with cross-sectional panel dependence and multiple structural breaks; iv) however, there is a stable long-run relationship between exports and imports in the panel. Hence, trade imbalances can be less unsustainable but this is not sufficient to make current account imbalances sustainable.Show less >

Language :

Anglais

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL