earticle

영어

The primary concern of this study is to investigate the stability of current account through the relationship between import and export in Korea. In our research we employ causality and cointegration based tests. Through the causality test on time domain, we find bilateral relationship between the variables. And Engle-Granger 2 stage cointegration test shows significant. Additionally, we employ multi-cointegration test to investigate deeper cointegration capturing cumulative current account properties. However, there is no relationships. Thus we employ alternative method to examine the causality, which has been proposed by Breitung and Candelon (2006). The results reveal no casual relationships between the variables. It is concluded that the stability of current account is not shown in Korea. These results imply that it is necessary to specify alternative theoretical and empirical model for export and import accounting for cumulative properties in future researches.