The Sustainability of African Current Account Deficits: A Panel Cointegration Analysis

Mark Holmes ()

Economia Internazionale / International Economics, 2003, vol. 56, issue 2, 243-253

Abstract: This study tests for the sustainability of current account deficits for a sample of twenty six African countries. For this purpose, a new test procedure advocated by Pedroni is employed which allows one to test for cointegration between exports and imports in heterogeneous panel datasets. This test uses more observations and exploits the cross-country variations of the data in estimation thereby yielding higher test power than alternative cointegration tests. An additional advantage associated with the Pedroni methodology is that we are able estimate the long-run relationships using fully modified and dynamic ordinary least squares and then test country-specific restrictions for long-run sustainability. Using annual data covering the period 1960-2000, this study finds strong evidence in favour of current account sustainability for eight African countries.

Keywords: LDC; current account; panel data; cointegration (search for similar items in EconPapers)
JEL-codes: F30 F40 (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:ecoint:0164

Access Statistics for this article

Economia Internazionale / International Economics is currently edited by Giovanni Battista Pittaluga

More articles in Economia Internazionale / International Economics from Camera di Commercio Industria Artigianato Agricoltura di Genova Via Garibaldi 4, 16124 Genova, Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Angela Procopio ().