Sustainability of current account for Latin America and Caribbean countries

Huseyin Kalyoncu and Ilhan Ozturk

Applied Economics Letters, 2010, vol. 17, issue 8, 781-785

Abstract: This article examines sustainability of current account for Colombia, Peru, Venezuela, Mexico, Brazil and Argentina. Using the usual intertemporal borrowing constraint, we have tested for a long-run relationship between exports and imports plus net transfer payments and net interest payments. In our empirical analysis of the sustainability of current account, cointegration approaches have been used. Empirical results suggest that in the case of Peru, there exists a unique long run or equilibrium relationship among real exports and imports. In the case of Colombia, Venezuela, Mexico, Brazil and Argentina, cointegration results suggest that these countries' current accounts are not sustainable in the long run.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (13)

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:17:y:2010:i:8:p:781-785

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

DOI: 10.1080/13504850802359937

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 ().