A new approach to examining the sustainability of external imbalances: the case of Japan

Tuck Cheong Tang ()

Applied Economics Letters, 2006, vol. 13, issue 5, 287-292

Abstract: This study aims to solve the puzzle of the conventional practice of examining the sustainability of external accounts by initially looking for cointegration between imports and exports. This study proposes a new approach to examine this thesis using unit root tests (with unknown break date) on trade balance series rather than testing the cointegration relationships between imports and exports. In contrast to previous findings, this study has shown empirically that Japan's trade balances are unsustainable. This finding has important policy implications for Japan's external accounts.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:13:y:2006:i:5:p:287-292

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504850500378726

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().