IDEAS home Printed from https://ideas.repec.org/b/sea/spaper/sp63.html
   My bibliography  Save this book

Sustainability of External Account Deficits

Author

Listed:
  • Delano Villanueva
  • Vincent Lim Choon-Seng

Abstract

This paper examines the notion of sustainability of current account deficit using the consumption smoothing approach model. Empirical evidences suggest that the current account deficits in Indonesia, Malaysia and the Philippines can be explained by the model. Results also show that prior to the crisis, there was some degree of over-borrowing but it appears that overall, the current account deficits of these countries were sustainable during 1970-1997. The paper notes that for developing countries, it may be optimal to run current account deficits, provided that it is not excessively large. The current account imbalances should also be dealt with at source - excessive domestic absorption, particularly consumption.

Suggested Citation

  • Delano Villanueva & Vincent Lim Choon-Seng, 2000. "Sustainability of External Account Deficits," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp63, April.
    • Handle: RePEc:sea:spaper:sp63
    as

    Download full text from publisher

    File URL: http://www.seacen.org/GUI/pdf/publications/staff_paper/2000/SP63.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sea:spaper:sp63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Azharin (email available below). General contact details of provider: https://edirc.repec.org/data/seacemy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.