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ANALYSIS OF THE CURRENT ACCOUNT POSITION OF FOUR ASIAN COUNTRIES BEFORE THE 1997 CRISIS
Author(s) -
AndreossoO’Callaghan B.,
Kan Denis
Publication year - 2007
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2007.00339.x
Subject(s) - cointegration , economics , current account , position (finance) , macroeconomics , financial crisis , international economics , econometrics , development economics , exchange rate , finance
. The current paper presents an empirical analysis of the current account positions during the pre Asian crisis period, in the four most crisis‐hit countries (namely Thailand, the Philippines, South Korea and Indonesia). We have employed the procedures advocated by Husted for the presence of stationarity in current accounts by estimating a cointegration relationship between any country's exports and imports. The results do not substantiate the presence of cointegration between the series, implying that the macroeconomic fundamentals in these countries prior to the crisis were far from robust, at least from the perspective of current account sustainability.