The sustainability of trade deficits in the presence of endogenous structural breaks: Evidence from the Indian economy

The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis

“…In a situation where there is high competition in the world market, the export price elasticity of economies producing higher-quality and hence higher-price goods should be lower than that of those producing lowerquality and lower-price goods. Hence we should observe an inverse relationship between the export price elasticities and the export prices of our sample economies (Baiardi, Bianchi, & Lorenzini, Nag & Mukherjee, 2012). It is worth noticing that in this case it is extremely difficult to check for the numerous possible combinations of heterogeneous structural breaks that might occur (for details, see Jewell et al, 2003).…”

Testing for current account sustainability under assumptions of smooth break and nonlinearity

“…It refers to whether an economy is able to meet its intertemporal budget constraint in the long run without a drastic change in private-sector behavior or policy changes, such as a sharp currency depreciation or a reduction in government expenditures. One avenue to discuss this issue is to employ a linear unit root test, cointegration test, panel unit root and panel cointegration with a consideration being given to a structural break (e.g., Apergis, Katrakilidis, & Tabakis, 2000;Arize, 2002;Baharumshah, Lau, & Fountas, 2003;Bergin & Sheffrin, 2000;Holmes, 2006aHolmes, ,2006bHolmes, Otero, & Panagiotidis, 2010;Ismail & Baharumshah, 2008;Lau & Baharumshah, 2005;Lau, Baharumshah, & Haw, 2006;Liu & Tanner, 2001;Nag & Mukherjee, 2012). Basically, distinct results based on previous research are due to differences in methodology, approaches and samples and are subject to diverse interpretations, thus making it difficult to reach a corroborative position on the stationarity property of the current account.…”

Do External and Internal Crises Affect Foreign Portfolio Inflows? The Case of China and India

“…During this period, not only GDP reduced significantly, but trade sector also experienced a slowdown. During the same period, Indian trade account deficit touched the alarming level amounting to 1.6 billion dollars (Nag & Mukherjee, 2012). Since the last decade, the economy of India is flourishing and it is enjoying an average growth rate of 7%.…”