Series: IMF Working Papers
Author(s): Luis Carranza , and Chorng-Huey Wong
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 1998
Keywords: capital inflows, emerging market economies, external imbalances, policy designs, causality test, current account, capital account, current account balance, current account deficits
A bivariate vector-autoregression (VAR) model is used to test causal relations between the current account and the capital account in four emerging market economies. The results show that high capital mobility coul...