Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286265 
Year of Publication: 
2022
Citation: 
[Journal:] Revista de Métodos Cuantitativos para la Economía y la Empresa [ISSN:] 1886-516X [Volume:] 33 [Year:] 2022 [Pages:] 134-153
Publisher: 
Universidad Pablo de Olavide, Sevilla
Abstract: 
The sustained current account deficit in any country has an important implication for policy. If it continues, then it suggests that the regime ought to have no motivation to avoid or to diminish its international debt. In this paper, we test empirically the relationship among current account deficit and different macroeconomic variables by using panel Logit model. Therefore, we focus on the MENA countries during the years of 1980-2017. We built an econometric model to analyse the contribution of the real GDP, unemployment rate (UR), consumer price index (CPI), export growth rate (EGR), import growth rate (IGR), public expenditures (PE), and foreign trade rate (FTR) on current account deficit (CAD). We established that only the following exogenous variables: GDP, UR, PE and FTR have a positive and significant effect on the current account deficit. This outcome may support governments to identify the best time for investment and business strategies by observing the evolution of the performance of higher temporal hierarchy industries.
Subjects: 
current account deficit
panel Logit model
MENA countries
macroeconomic variables
JEL: 
C13
C23
C51
C52
C55
C58
G17
G18
G28
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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