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Title: |
Dynamic Modelling of the Current Accounts:
Evidence from the Caribbean |
| Author: |
Craigwell,
Roland C.; Samaroo, Sudesh |
| Author
Affiliation: |
Central Bank of
Barbados; U W Indies |
| Source: |
International Economic Journal, Winter 1997, v. 11, no. 4, pp. 39-50 |
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Publication Date: |
Winter 1997 |
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Abstract: |
This paper uses time series and pooled
data to estimate the current account function of a non-oil developing
country (Barbados) and an oil dependent economy (Trinidad and Tobago).
The pooled data reveals that the terms of trade (TOT), the government
variable (BSGDP), foreign incomes (FGDP), the prime rate and long term
capital flows (LTKGDP) are significant variables. The cointegration-error
correction model suggests that in Trinidad and Tobago, the exchange
rate, BSGDP and FGDP are important explanatory variables; for Barbados,
TOT and the BSGDP ratio are influential in the long-run while the latter
ratio and LTKGDP are important short run regressors. |
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