Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/304244 
Year of Publication: 
2023
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 11 [Issue:] 2 [Article No.:] 2269758 [Year:] 2023 [Pages:] 1-11
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study offers a novel examination of the mean-reversion properties of the current account balances, expressed as a percentage of GDP, for the Asian-5 economies: Indonesia, Korea, Malaysia, the Philippines, and Thailand. While prior studies mainly employed traditional unit-root tests, our research stands out for its use of novel panel stationarity tests that account for cross-sectional dependence and incorporate both sharp and smooth structural breaks via a Fourier function. Our findings robustly indicate the sustainability of the current accounts of the Asian-5 nations. The emphasis on the significance of structural breaks with a Fourier component sets this research apart, offering fresh perspectives on the intricacies of current account mean-reversion dynamics and the long-term sustainability implications for these economies.
Subjects: 
current account
Fourier function
nonlinearity
stationarity
JEL: 
C22
F32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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