Hidden Bibliographic Details
| Other authors / contributors: | Mendoza, Enrique G., 1963- author.
Terrones, Marco, author.
International Monetary Fund. Research Department, issuing body.
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| ISBN: | 1283569345
9781283569347
9781451963298
1451963297
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| Notes: | Includes bibliographical references (pages 24-27).
Restrictions unspecified
Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2011.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2011 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Theory predicts that a nation's stochastic intertemporal budget constraint is satisfied if net exports (NX) and net foreign assets (NFA) satisfy an error-correction specification with a residual integrated of any finite order. We test this hypothesis using data for 21 industrial and 29 emerging economies for the 1970-2004 period to search for existence of negative relationship between NX and NFA. The results show that, despite the large global imbalances of recent years, NX and NFA positions are consistent with external solvency. Pooled Mean Group error-correction estimation yields evidence of a statistically significant, negative response of the NX-GDP ratio to the NFA-GDP ratio that is largely homogeneous across countries.
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| Other form: | Print version: Durdu, Ceyhun Bora. On the solvency of nations. [Washington, D.C.] : International Monetary Fund, ©2010
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