Applying the recently developed unit root tests with unknown level shift (Lanne, Lutkepohl and Saikkonen, 2002; Saikkonen and Lutkepohl, 2002) and the cointegration test with structural break (Gregory and Hansen, 1996), this study reinvestigates the cointegration relationship between imports and...

: By extending Wong and Tang s (2007) study, this paper aims at further exploring the causal relations between Foreign Direct Investment (FDI ), exports and imports. There is a unique long-run causal relationship running from exports as well as imports to FDI. A bidirectional causal relationship...

: This study analyzes the sustainability of balancing item (errors and omissions) of balance of payments accounts of 18 industrial countries employing unit root tests with level shifts. Initially, the descriptive summary suggests that the balancing items of the 18 industrial countries are...

This study empirically examines the sustainability of external imbalances in 22 least developed countries as classified by the World Bank. The study uses the real trade balance series, which captures more precisely the behavior of the external balance. It examines the stationarity of the real...

This study is an extension of the study by Tang (Japan and the World Economy, 15, 419-36, 2003b), which has documented no long-run equilibrium relationship among the Japanese aggregate imports, real income and relative price of imports. This finding, however, is probably due to the bias of...

This study aims to solve the puzzle of the conventional practice of examining the sustainability of external accounts by initially looking for cointegration between imports and exports. This study proposes a new approach to examine this thesis using unit root tests (with unknown break date) on...

Using Xu's (2002) import demand equation, the present study re-investigates the presence of a cointegrating relation of Japan's aggregate import demand. The sample period covers quarterly data from 1973 to 2000. The results of various cointegration techniques confirm that the volume of import,...

This commentary is served as an additional light both from theoretical and empirical perspectives, on the study by Duasa (Global Economic Review, 2007, 36, pp. 89-102) who examined the short- and long-run relationships between trade balance, real exchange rates, income, and money supply for...