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Assessing the current account sustainability in ECCAS economies: A dual cointegration analysis

Author

Listed:
  • Amba Oyon Claude Marius

    (Faculty of Economics and Managment, University of Yaounde II, Cameroon.)

  • Taoufiki Mbratana

    (Faculty of Economics and Managment, University of Yaounde II, Cameroon.)

  • Kane Gilles Quentin

    (Faculty of Economics and Managment, University of Yaounde II, Cameroon.)

Abstract
This paper examines the sustainability of the current account deficits in eight Economic Community of Central African States (ECCAS) over the period 1970 to 2015. The empirical investigation relies on both panel and intra-panel approaches to test for long-run relationship between variables. Furthermore, non-linearity as well as asymmetric adjustment of Enders and Siklos (2001) is taken into account in cointegration analysis. Results from panel analysis show that; although exports and imports are cointegrated, the current account deficits are weakly sustainable in ECCAS. These results also hold in each country's analysis. Therefore, these eight ECCAS countries should implement policies to reinforce the sustainability of the current account deficits.

Suggested Citation

  • Amba Oyon Claude Marius & Taoufiki Mbratana & Kane Gilles Quentin, 2017. "Assessing the current account sustainability in ECCAS economies: A dual cointegration analysis," Economics Bulletin, AccessEcon, vol. 37(3), pages 1873-1894.
    • Handle: RePEc:ebl:ecbull:eb-17-00517
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    References listed on IDEAS

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    More about this item

    Keywords

    Current account; Sustainability; ECCAS; Threshold Cointegration;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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