The sustainability of trade accounts of the ASEAN-5 countries
Journal of Chinese Economic and Foreign Trade Studies
ISSN: 1754-4408
Article publication date: 28 January 2014
Abstract
Purpose
The present study aims to analyse the sustainability of the trade deficits in the Association of Southeast Asian Nations (ASEAN)-5 countries using panel framework during the period from 1965 to 2011.
Design/methodology/approach
The paper applied a battery of first- and second-generation panel unit root tests and Pedroni's, Kao and Chiang's, Westerlund, and Di Iorio and Fachin cointegration tests to achieve the objective.
Findings
The paper found the evidence of sustainable trade deficit in ASEAN-5 countries while utilizing panel unit root tests as well as panel cointegration tests.
Research limitations/implications
The findings have important macroeconomic policies implication for ASEAN-5 countries that these policies had been effective in leading exports and imports to long-run steady-state equilibrium relationship among the ASEAN-5 countries.
Originality/value
The main contribution of the paper is to show that the macroeconomic policies of ASEAN-5 countries had been effective in leading exports and imports to long-run steady-state equilibrium relationship. To the authors' best knowledge, in this area, this is the first study in the panel framework for ASEAN countries.
Keywords
Acknowledgements
The authors are grateful to two anonymous referees for their very constructive comments and suggestions on an earlier draft of the manuscript without which the paper would have remained flawed and incomplete. The authors are solely responsible for any remaining errors.
Citation
Olaolu Richard, O. and Kumar Tiwari, A. (2014), "The sustainability of trade accounts of the ASEAN-5 countries", Journal of Chinese Economic and Foreign Trade Studies, Vol. 7 No. 1, pp. 51-65. https://doi.org/10.1108/JCEFTS-06-2013-0023
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited