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Journals / Ege Akademik Bakış / 2018 / Cilt: 18 - Sayı: 1

Sustainability Of Current Account Deficits In Fragile Five: Evidence From Non-Linear Unit Root Tests

Kırılgan Beşlide Cari Açıkların Sürdürülebilirliği: Doğrusal Olmayan Birim Kök Testleri İle Kanıtlar

Reşat CEYLAN
Pages
121–134
Publication Date
2022-10-12
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

This result is important in that the central banks in the fragile five countries, except Brazil, do not face a restriction caused by current account deficit in inflation target regime.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The debate on the sustainability of current account deficit is one of the unresolved matters among economist for a long time.
📊
Key Findings & Data:The main purpose of this study is to analyze the issue of sustainability of current account deficits for fragile five countries by using nonlinear alternative unit root tests.
💡
Conclusion & Impact:This result is important in that the central banks in the fragile five countries, except Brazil, do not face a restriction caused by current account deficit in inflation target regime.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

The debate on the sustainability of current account deficit is one of the unresolved matters among economist for a long time. The main purpose of this study is to analyze the issue of sustainability of current account deficits for fragile five countries by using nonlinear alternative unit root tests. The findings obtained from KSS and AESTAR tests revealed that current account deficit is sustainable in countries except for Brazil. This result is important in that the central banks in the fragile five countries, except Brazil, do not face a restriction caused by current account deficit in inflation target regime.

Özet

Cari açıkların sürdürülebilirliği tartışmaları, ötedenberi iktisatçılar arasında görüş birliğine varılamamışönemli konulardandır. Bu çalışmanın temel amacı,doğrusal olmayan alternatif birim kök testlerinikullanarak, cari açıkların sürdürülebilirliği sorununukırılgan beşli ülkeleri için analiz etmektir. Çalışmadakullanılan KSS ve AESTAR testlerinden eldeedilen bulgular, Brezilya dışındaki diğer ülkelerdecari açıkların sürdürülebilir olduğunu ortayakoymaktadır. Bu sonuç, kırılgan beşli ülkelerindeBrezilya hariç, merkez bankalarının enflasyonhedeflemesi rejiminde cari açık kaynaklı birkısıtlama ile karşı karşıya olmadıklarını göstermesibakımından önemlidir.

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Cite This Article

CEYLAN, R. (2022). Sustainability Of Current Account Deficits In Fragile Five: Evidence From Non-Linear Unit Root Tests. Ege Akademik Bakış, Cilt: 18 - Sayı: 1, 121–134. https://ajindex.com/articles/495193

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