An Investigation of Current Account Solvency in Latin America Using Non Linear Nonstationarity Tests

Using a new methodology that allows nonlinearities, we find frequent support for external debt sustainability in a number of Latin American countries. Our findings reverse the results for several countries, obtained with traditional unit-root tests and present a richer framework for evaluating the external solvency of an economy. Our results also provide some justification for the assumption the international current accounts are based on.

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Year of publication:	2004
Authors:	Chortareas, Georgios E ; Kapetanios, George ; Uctum, Merih
Published in:	Studies in Nonlinear Dynamics & Econometrics. - De Gruyter, ISSN 1558-3708, ZDB-ID 1385261-9. - Vol. 8.2004, 1
Publisher:	De Gruyter

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Type of publication:	Article
Type of publication (narrower categories):	research-article
Language:	English
Other identifiers:	10.2202/1558-3708.1200 [DOI]
Source:	Other ZBW resources

Persistent link: https://www.econbiz.de/10014620906