Current-Account Reversals in Developing Countries: The Role of Fundamentals
Bagnai, Alberto and Manzocchi, Stefano (1998) Current-Account Reversals in Developing Countries: The Role of Fundamentals. [Working Paper]. Social Science Electronic Pub. p. 32. SSRN Working Paper Series
|PDF (Full text) - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader|
Official URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id...
This paper studies episodes of current-account reversal in developing countries (DCs) in the period 1965-1994. First, a number of persistent shifts ("reversals") in the current-account balance dynamics are identified by structural break and segmented trend tests; then, the relationship between these reversals and a set of fundamentals suggested by the intertemporal approach to the current account is investigated in a panel-data set-up. We find that fundamentals play a different role in episodes of persistent deterioration or improvement of the current-account balance in DCs.
|Item Type:||Report / Paper (Working Paper)|
|Research documents and activity classification:||Working Papers > Refereed Working Papers / of international relevance|
|Divisions:||Department of Economics and Finance > LLEE (Luiss Lab of European Economics)|
|Additional Information:||The definitive version of the paper has been published in "Open Economies Review", Vol. 10 (2), Pages 143-163, May 1999.|
|Uncontrolled Keywords:||Current-account dynamics; Developing countries; Unit roots; Structural breaks; Panel data.|
|MIUR Scientific Area:||Area 13 - Economics and Statistics > SECS-P/01 Political Economy|
|Deposited By:||Maria Teresa Nistico|
|Deposited On:||07 Dec 2010 16:48|
|Last Modified:||07 Dec 2010 17:18|
Repository Staff Only: item control page