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Title: |
Are the U.S. Current Account Deficits Really
Sustainable? |
| Author: |
Fountas,
Stilianos; Wu, Jyh-Lin |
| Author
Affiliation: |
National U
Ireland; National Chung Cheng U |
| Source: |
International Economic Journal, Autumn 1999, v. 13, no. 3, pp. 51-58 |
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Publication Date: |
Autumn 1999 |
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Abstract: |
We have tested for a long-run relationship
between four U.S. export measures and analogous import measures
(measured in nominal and real terms, levels and deflated by GNP) in the
1967-1994 period using quarterly data. Using various econometric tests
that include standard Engle-Granger cointegration tests and two tests
that allow for test-determined breaks in the cointegrating relationship,
we have shown that the hypothesis of no long-run relationship between
exports and imports cannot be rejected. This finding contrasts sharply
with earlier literature and carries the important policy implication
that US current account deficits are not sustainable. |
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