Cuestas, J.C. and Regis, P.J. (2013) On the relationship between exchange rates and external imbalances: East and Southeast Asia. Research Report. Department of Economics, University of Sheffield ISSN 1749-8368
Abstract
The role the real exchange rate plays in determining current account balances has gathered momentum as East and Southeast Asian countries have seen increasingly positive current account balances. This paper analyses the evolution of current accounts in the region. A cointegrating relationship between the real effective exchange rate and the ratio of the current account balance to the GDP is tested, based on both linear and nonlinear models. The half-life of current account imbalances is relatively short, implying high capital mobility. Results point to the existence of a long-run relationship, and in most cases the causality runs from the exchange rate to the current account.
Metadata
Item Type: | Monograph |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | The Sheffield Economics Research Paper (SERP) series offers a forum for the research output of the academic staff and research students of the Department of Economics, University of Sheffield. Papers are reviewed for quality and presentation by a departmental editor. However, the contents and opinions expressed remain the responsibility of the authors. All papers may be downloaded free on the understanding that the contents are preliminary and therefore permission from the author(s) should be sought before they are referenced. |
Keywords: | emerging markets; current account; half-life; East and Southeast Asia. |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) > Sheffield Economics Research Papers Series |
Depositing User: | Miss Anthea Tucker |
Date Deposited: | 11 Nov 2013 13:28 |
Last Modified: | 25 Oct 2016 21:45 |
Status: | Published |
Publisher: | Department of Economics, University of Sheffield |
Identification Number: | 2013015 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:77016 |