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Current Account Balance In Emerging Asia

Author

Listed:
  • ARIÇ Kıvanç Halil

    (Sivas Cumhuriyet University, Faculty of Economics and Administrative Sciences, Department of International Trade and Logistics, Sivas, Turkey)

  • SEK Siok Kun

    (School of Mathematical Sciences,Universiti Sains Malaysia, Penang, Malaysia)

  • de SOUSA Miguel Rocha

    (School of Social Science, Department of Economics, Universidade de Évora, Portugal)

Abstract

The current account balance is an important indicator which reveals information on a country’s economic situation such as investments, capital flows, and indebtedness. The main purpose of this study is to examine the current account balance conditions in emerging Asian countries. In this respect, the long-run and causality relationship between current account balance, economic growth, government expenditure, real interest rates, and foreign direct investment was examined. The panel data analysis was applied using the data dated 1986 to 2015. Our results revealed a causal effect from economic growth and government expenditure to current account balance mainly dependent on saving tendency.

Suggested Citation

  • ARIÇ Kıvanç Halil & SEK Siok Kun & de SOUSA Miguel Rocha, 2021. "Current Account Balance In Emerging Asia," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 16(1), pages 12-25, April.
    • Handle: RePEc:blg:journl:v:16:y:2021:i:1:p:12-25
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    References listed on IDEAS

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    More about this item

    Keywords

    Current account balance; emerging Asia; panel co-integration; panel causality;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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