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...

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...

This paper analyzes the impacts of timing errors, capital flows and economic openness on the behavior of the balancing item. We choose Norway, Sweden, Philippines and South Africa as sample countries where the size of the balancing item is often excess the IMF's criterion of ‘smallness'....