Is Lebanon’s Trade Deficit Sustainable? A Cointegration Analysis

Charalambos Pattichis () and Mona Kanaan
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Charalambos Pattichis: Cyprus International Institute of Management, Nicosia, Cyprus, and Lebanese American University, Beirut, Postal: P.O Box 20378 2151 Aglandjia Nicosia, Cyprus , ,, http://www.ciim.ac.cy/
Mona Kanaan: The Open University, Department of Statistic, Postal: PO Box 197, Milton Keynes, MK7 6BJ, United Kingdom, http://www.open.ac.uk/

Economia Internazionale / International Economics, 2001, vol. 54, issue 1, 49-56

Abstract: This paper focuses on the sustainability of Lebanon’s trade deficit over a period characterised by war and reconstruction. Annual and quarterly data on imports and exports were used. Unit root and cointegration tests suggest that imports and exports are cointegrated and the trade balance is stationary. These results carry the important implication that Lebanon’s trade deficit is sustainable.

Keywords: Trade deficit sustainability; Lebanon; cointegration. (search for similar items in EconPapers)
JEL-codes: F40 F41 (search for similar items in EconPapers)
Date: 2001
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