Are exports and imports cointegrated? evidence from nine MENA countries

Jamal G. Husein ^[1]
1. [1] Angelo State University
  
  Angelo State University
  
  Estados Unidos
Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 14, Nº. 1, 2014, págs. 123-132
Idioma: inglés
Enlaces
- Texto completo (pdf)

Resumen
- The aim of this article is to examine the long-run convergence (cointegration) between exports and imports for nine MENA (Middle East and North Africa) countries. Evidence of cointegration ensures that trade imbalances are sustainable. The article explores this issue by applying the bounds testing approach to cointegration and by using annual data. The findings of cointegration between exports and imports for Iran, Israel, Jordan, and Tunisia indicate that these countries are not in violation of their international budget constraint. In addition, the CUSUM and CUSUMSQ tests confirm stability of the estimated parameters.