|
|
|
|
Title: |
Taiwan's Current Account Surplus: Incipient
Dutch Disease? |
| Author: |
Fry, Maxwell J. |
| Author
Affiliation: |
U Birmingham |
| Source: |
International Economic Journal, Autumn 1990, v. 4, no. 3, pp. 93-112 |
|
Publication Date: |
Autumn 1990 |
|
Abstract: |
My small-scale macroeconomic model of the
Taiwanese economy contains behavioral equations to explain saving,
investment, the rate of economic growth, export demand, export supply,
and import demand. Exploiting the two definitions of the current account
(national saving--domestic investment and exports + net factor income
from abroad--imports), the in-sample dynamic simulation tracks the
current account remarkably well. If the Taiwanese government pursued
deliberate policies to reduce the current account surplus, this model
indicates that the effects on the economy would depend critically on
whether the current account surplus was eliminated by reducing national
saving or by raising domestic investment. |
|
