|
|
|
|
Title: |
Long-Run and Short-Run Behavior of Korea's
Current Account |
| Author: |
Fry, Maxwell J. |
| Author
Affiliation: |
U Birmingham |
| Source: |
International Economic Journal, Winter 1991, v. 5, no. 4, pp. 93-117 |
|
Publication Date: |
Winter 1991 |
|
Abstract: |
Recent research indicates that an error
correction mechanism exists for current account imbalances in Germany,
Japan, and the United States. In this paper, the author tests whether
current account imbalances in Korea are also self-correcting. The
empirical results are ambiguous: while no cointegrating relationship can
be detected, an error correction mechanism can. Using standard
econometric methods, estimates of a small-scale macroeconomic model
detect no effect of Korea's lagged net foreign claim position on any
relevant variable. However, he does find that the current account is
influenced by Korea's lagged net foreign claim position in a direct
estimate of Korea's current account. |
|
