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Are Imports and Exports Cointegrated: the Case of Bulgaria between 1967 and 2004

100%
Bineau Y.
South East European Journal of Economics and Business
|
2007
|
vol. 2
|
issue 2
53-56
EN
This note tests current account sustainability in Bulgaria from 1967 to 2004. Empirical analysis adopts various unit root and cointegration tests with structural breaks. Evidence of a long run relation between exports and imports in Bulgaria is shown, despite the financial crisis of 1996/8. Intertemporal current account constraint is not violated in Bulgaria.
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