On the stationarity of current account deficits in the European union

Mark J. Holmes, Jesús Otero, Theodore Panagiotidis

Research output: Contribution to journalArticlepeer-review

19 Scopus citations

Abstract

In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit-root panel data testing, namely (i) the identification of which panel members are stationary, and (ii) the presence of cross-sectional dependence. For this purpose, we employ an AR-based bootstrap approach to the Hadri (2000) test. While there is only mixed evidence that current account stationarity applies when examining individual countries, this does not appear to be the case when considering panels comprising both EU and non-EU members.

Original languageEnglish (US)
Pages (from-to)730-740
Number of pages11
JournalReview of International Economics
Volume18
Issue number4
DOIs
StatePublished - Sep 2010

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development

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