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

Year 2014, Volume: 4 Issue: 3, 564 - 571, 01.09.2014

Huseyin Kalyoncu Muhittin Kaplan

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

panel data unit-root test current account solvency

Year 2014, Volume: 4 Issue: 3, 564 - 571, 01.09.2014

Huseyin Kalyoncu Muhittin Kaplan

Abstract

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Details

Other ID JA24GC36ET
Journal Section Research Article
Authors

Huseyin Kalyoncu This is me

Muhittin Kaplan This is me

Publication Date September 1, 2014
Published in Issue Year 2014 Volume: 4 Issue: 3

Cite

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.
AMA Kalyoncu H, Kaplan M. Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints. IJEFI. September 2014;4(3):564-571.
Chicago 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 4, no. 3 (September 2014): 564-71.
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 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, 2014.
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 2014), 564-571.
JAMA 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, 2014, pp. 564-71.
Vancouver Kalyoncu H, Kaplan M. Analyzing the Sustainability of Current Account in ASEAN Countries: Test of Intertemporal Borrowing Constraints. IJEFI. 2014;4(3):564-71.