This paper will investigate the sustainability of external debt for 21 OECD countries. We modify the solvency condition in an open economy derived by Sawada (1994). The quantile autoregression (QAR) model is applied to test the stationary property of the net external surplus process. The...

We analyze the G7 countries data set of real balance of payments series. The unit root tests with an endogenously determined break date in the trend function proposed by Zivot and Andrews (1992) is employed to characterize the balance of payments series. The empirical results show that allowing...

The effect of moving capital abroad on the domestic labour market is ambiguous. We examine the relation between capital outflow and unemployment with the use of panel data techniques. The result shows that in developing countries, the outward direct investment is beneficial to employment and the...