INTERTEMPORAL APPROACH TO THE CURRENT ACCOUNT: EVIDENCE FROM SAUDI ARABIA, 1969-1997
0
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
The Saudi Arabian current account (CA) has fluctuated sharply over the last thirty years. The Saudi government has striven to manage its CA balance over time by making necessary adjustments in internal expenditures to achieve intertemporal optimization. This paper tests the effectiveness ofsuch a government policy by way ofan intertemporal approach to CA. The estimation results (Granger-causality test,formal test, and equality-ofvariances test) indicate that the model captures the statistically important features of the current account behaviorfor the period of1969-1997, which demonstrates a high level ofeffectiveness in the Saudi CA management.
Abstract
The Saudi Arabian current account (CA) has fluctuated sharply over the last thirty years. The Saudi government has striven to manage its CA balance over time by making necessary adjustments in internal expenditures to achieve intertemporal optimization. This paper tests the effectiveness ofsuch a government policy by way ofan intertemporal approach to CA. The estimation results (Granger-causality test,formal test, and equality-ofvariances test) indicate that the model captures the statistically important features of the current account behaviorfor the period of1969-1997, which demonstrates a high level ofeffectiveness in the Saudi CA management.