On the Sustainability of the EU’s Current Account Deficits


  • Discussion Paper Series


  • In this paper, we test for the stationarity of EU current account deficits. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (i) the identification of which members-states are stationary, and (ii) the presence of cross-sectional dependence. For this purpose, we employ a moving block bootstrap approach to the Hadri (2000) test. While there is evidence that current account sustainability applies to panels comprising EU members, this is not the case when non-EU economies are considered.

fecha de publicación

  • 2007-02

Líneas de investigación

  • Current Account Sustainability
  • Heterogeneous Dynamic Panels
  • Mean Reversion
  • Panel Stationarity


  • 2007_6