The sustainability of trade accounts of the G-7 countries

Shigeyuki Hamori

Applied Economics Letters, 2009, vol. 16, issue 17, 1691-1694

Abstract: This article has examined the sustainability of the trade accounts of the G-7 countries by analysing the long-run equilibrium between exports and imports. We applied the techniques of the recently developed nonstationary panel data analysis and found that the trade accounts of the G-7 countries are very likely to be nonstationary variables. This implies that trade accounts are not sustainable for the G-7 countries. Therefore, some appropriate policies must be implemented to prevent trade imbalances from increasing.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:16:y:2009:i:17:p:1691-1694

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DOI: 10.1080/13504850701675490

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