Title
An empirical analysis of sustainability of trade deficit: evidence from South Asian countries
Document Type
Conference Paper
RIS ID
25651
Abstract
In this paper, the long-run relationship between Sri Lankan exports and imports during the period 1950 to 2006 is examined using unit root tests and cointegration techniques that allow for an endogenously determined structural break. The results failed to support the existence of a long-run equilibrium between exports and imports in Sri Lanka. This finding questions the effectiveness of Sri Lanka’s current long-term macroeconomic policies and suggests that Sri Lanka is in violation of its international budget constraint.
Link to publisher version (URL)
COinS
This record is in the process of being updated. Please contact us for more information.
Publication Details
Verma, R. & Perera, N. (2008). An empirical analysis of sustainability of trade deficit: evidence from South Asian countries. The 37th Australian Conference of Economists (p. [22]). Brisbane: Economic Society of Australia.