The Relationship between Current Account Deficits and Growth in Montenegro: ARDL Bounds Testing Approach

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ÖZER M., Zugic J., Tomas-Miskin S.

JOURNAL OF CENTRAL BANKING THEORY AND PRACTICE, cilt.7, sa.3, ss.5-24, 2018 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 7 Sayı: 3
  • Basım Tarihi: 2018
  • Doi Numarası: 10.2478/jcbtp-2018-0020
  • Dergi Adı: JOURNAL OF CENTRAL BANKING THEORY AND PRACTICE
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus
  • Sayfa Sayıları: ss.5-24
  • Anahtar Kelimeler: Current account deficit, ARDL Bounds testing, Granger Causality, Co-integration, Montenegro Economy
  • Anadolu Üniversitesi Adresli: Evet

Özet

In this study, we investigate the relationship between current account deficits and growth in Montenegro by applying the bounds testing (ARDL) approach to co-integration for the period from the third quarter of 2011 to the last quarter of 2016. The bounds tests suggest that the variables of interest are bound together in the long run when growth is the dependent variable. The results also confirm a bidirectional long run and short run causal relationship between current account deficits and growth.