Mean Reversion of the Current Account and Sustainability: Evidence from European Countries
Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey
Stationarity of the current account is suggested as an indicator of the current account sustainability in the literature. We explore the presence of mean-reverting behaviour in current accounts of 24 European countries, using linear and nonlinear unit root tests. Our results suggest mean reversion of the current account-to-GDP ratios for almost two-thirds of the countries in our sample, hence; provide supporting evidence for the current account sustainability of these countries.
Keywords: Current account sustainability; stationarity; non-linear adjustment; non-linear models (search for similar items in EconPapers)
JEL-codes: C22 F32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc and nep-opm
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN ... g+Paperss/2014/14-11 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1411
Access Statistics for this paper
More papers in Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey Contact information at EDIRC.
Bibliographic data for series maintained by Sermet Pekin () and Ilker Cakar () and ().