Macroeconometric modeling of saving and investment for Mercosur countries
In the long run, the present value of current account balance can not grow indefinitely large without precipitating in a macroeconomic crisis. This simple insight produces an econometrically testable relationship between saving and investment. We use data for four countries, which belong to the Mercosur Common Trade Agreement: Argentina, Brazil, Paraguay and Uruguay. The results indicate that there is no long run relationship between saving and investment in these countries. Thus, Mercosur is likely to act as a palliative against such a possibility in the future.
Year of publication: |
1998
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Authors: | Sinha, Tapen ; Sinha, Dipendra |
Published in: |
Estudios Económicos. - Centro de Estudios Económicos. - Vol. 13.1998, 1, p. 57-72
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Publisher: |
Centro de Estudios Económicos |
Saved in:
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