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dc.contributor.authorSingh, Tarlok
dc.date.accessioned2018-12-06T01:15:09Z
dc.date.available2018-12-06T01:15:09Z
dc.date.issued2015
dc.identifier.issn0003-6846
dc.identifier.doi10.1080/00036846.2015.1039701
dc.identifier.urihttp://hdl.handle.net/10072/141176
dc.description.abstractThis study examines the sustainability of current account deficits (CADs) and the validity of intertemporal budget constraint (IBC) in India. The long-run model is estimated on annual data for the period 1950–1951 to 2009–2010. The optimal single-equation and maximum-likelihood (ML) system estimates of the model provide a consistent support for the long-run relationship between imports and exports. The OLSGH estimates provide no support and that ML system estimates a consistent support for cointegration in both the models estimated with one and two structural breaks in level. The new cointegration breakdown tests generally suggest that the cointegration prevails from 1951 to 2010. The evidence supporting the cointegration between imports and exports overwhelms the evidence providing a mixed or no support for cointegration. The estimates of slope parameter above zero and the dominant support for cointegration between imports and exports vindicate the validity of IBC and the sustainability of CADs. The short-term management strategies need to be accompanied by long-term improvements in productivity to reduce inflation, lever up the competitiveness of exports and ensure the sustainability of the external value of domestic currency.
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherTaylor & Francis
dc.relation.ispartofpagefrom4934
dc.relation.ispartofpageto4951
dc.relation.ispartofissue46
dc.relation.ispartofjournalApplied Economics
dc.relation.ispartofvolume47
dc.subject.fieldofresearchApplied economics
dc.subject.fieldofresearchApplied economics not elsewhere classified
dc.subject.fieldofresearchEconometrics
dc.subject.fieldofresearchBanking, finance and investment
dc.subject.fieldofresearchcode3801
dc.subject.fieldofresearchcode380199
dc.subject.fieldofresearchcode3802
dc.subject.fieldofresearchcode3502
dc.titleSustainability of current account deficits in India: an intertemporal perspective
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.hasfulltextNo Full Text
gro.griffith.authorSingh, Tarlok


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