The present study aims to analyse the sustainability of the trade deficits in the Association of Southeast Asian Nations (ASEAN)-5 countries using panel framework during the period from 1965 to 2011.
The paper applied a battery of first- and second-generation panel unit root tests and Pedroni's, Kao and Chiang's, Westerlund, and Di Iorio and Fachin cointegration tests to achieve the objective.
The paper found the evidence of sustainable trade deficit in ASEAN-5 countries while utilizing panel unit root tests as well as panel cointegration tests.
The findings have important macroeconomic policies implication for ASEAN-5 countries that these policies had been effective in leading exports and imports to long-run steady-state equilibrium relationship among the ASEAN-5 countries.
The main contribution of the paper is to show that the macroeconomic policies of ASEAN-5 countries had been effective in leading exports and imports to long-run steady-state equilibrium relationship. To the authors' best knowledge, in this area, this is the first study in the panel framework for ASEAN countries.
Olaolu Richard, O. and Kumar Tiwari, A. (2014), "The sustainability of trade accounts of the ASEAN-5 countries", Journal of Chinese Economic and Foreign Trade Studies, Vol. 7 No. 1, pp. 51-65. https://doi.org/10.1108/JCEFTS-06-2013-0023Download as .RIS
Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited