Kwalingana, Samson and Nkuna, Onelie (2009): The Determinants of Current Account Imbalances in Malawi.
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Persistent current account imbalances in many least developed and emerging countries have excited considerable interest among researchers and policy makers to have a clear understanding of the dynamics of the current account and its role in macroeconomic outcomes. Based on the saving-investment theory, this paper uses cointegration analysis to identify the long run and short-run determinants of Malawi’s current account deficit using annual data from 1980 to 2006. Results suggest that openness, terms of trade, external debt accumulation, and current account liberalization fundamentally determined the current account deficit in Malawi. Furthermore, results reveal that these deficits have been, to a large extent, persistent.
|Item Type:||MPRA Paper|
|Original Title:||The Determinants of Current Account Imbalances in Malawi|
|Keywords:||Current Account Balance, Saving-Investment Balances,Cointegration|
|Subjects:||F - International Economics > F0 - General|
|Depositing User:||Samson Kwalingana|
|Date Deposited:||18. Apr 2009 13:49|
|Last Modified:||12. Feb 2013 02:39|
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