Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints

Volume: 4 Number: 3 September 1, 2014
  • Huseyin Kalyoncu
  • Muhittin Kaplan
EN

Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints

Abstract

The objective of this paper is to investigate the sustainability of current account imbalances by using the data of five ASEAN countries, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand over the 1981-2008 periods. Sustainability of current account for ASEAN countries is analyzed under intertemporal borrowing constraint (IBC) approach by performing an empirical analysis of Pedroni (1999) panel cointegration between exports and imports plus net transfer payments plus net interest payments. The empirical results of panel cointegration test show that these variables are cointegrated for whole period and two sub-periods. To find regression coefficient we use panel FMOLS and DOLS estimators. It is found that the coefficient is not significantly equal to one but very close to one. The overall results provide evidence in favour of the sustainability of the current account for five ASEAN countries as a group.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

-

Authors

Huseyin Kalyoncu This is me

Muhittin Kaplan This is me

Publication Date

September 1, 2014

Submission Date

September 1, 2014

Acceptance Date

-

Published in Issue

Year 2014 Volume: 4 Number: 3

APA
Kalyoncu, H., & Kaplan, M. (2014). Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints. International Journal of Economics and Financial Issues, 4(3), 564-571. https://izlik.org/JA46ZS64ZP
AMA
1.Kalyoncu H, Kaplan M. Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints. IJEFI. 2014;4(3):564-571. https://izlik.org/JA46ZS64ZP
Chicago
Kalyoncu, Huseyin, and Muhittin Kaplan. 2014. “Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints”. International Journal of Economics and Financial Issues 4 (3): 564-71. https://izlik.org/JA46ZS64ZP.
EndNote
Kalyoncu H, Kaplan M (September 1, 2014) Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints. International Journal of Economics and Financial Issues 4 3 564–571.
IEEE
[1]H. Kalyoncu and M. Kaplan, “Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints”, IJEFI, vol. 4, no. 3, pp. 564–571, Sept. 2014, [Online]. Available: https://izlik.org/JA46ZS64ZP
ISNAD
Kalyoncu, Huseyin - Kaplan, Muhittin. “Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints”. International Journal of Economics and Financial Issues 4/3 (September 1, 2014): 564-571. https://izlik.org/JA46ZS64ZP.
JAMA
1.Kalyoncu H, Kaplan M. Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints. IJEFI. 2014;4:564–571.
MLA
Kalyoncu, Huseyin, and Muhittin Kaplan. “Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints”. International Journal of Economics and Financial Issues, vol. 4, no. 3, Sept. 2014, pp. 564-71, https://izlik.org/JA46ZS64ZP.
Vancouver
1.Huseyin Kalyoncu, Muhittin Kaplan. Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints. IJEFI [Internet]. 2014 Sep. 1;4(3):564-71. Available from: https://izlik.org/JA46ZS64ZP