In this paper we analyze whether the Spanish current account deficit is sustainable or not. For this purpose we apply two different methodologies. First we test for stationarity of the Spanish current account. Second, we test for cointegration between exports and imports of goods and services....

This paper examines the sustainability of the current account deficit in eighteen Latin American countries through the analysis of the stationarity properties of the current account balance. First, we apply traditional unit root tests and consider the possibility of structural breaks. Second,...