Authors
Amelia U Santos-Paulino
Publication date
2013/10/18
Book
Understanding Small-Island Developing States
Pages
41-62
Publisher
Routledge
Description
The paper investigates the dynamic relationship between external and internal shocks and the current account in selected small islands developing states. External shocks, defined as terms of trade fluctuations, explain a significant proportion of the variation in the current account balances. The external shocks have a temporary negative impact on the current account balances with a subsequent improvement, generating a J-curve type reaction. In contrast, real output shocks have a positive and significant effect on the current account.
Scholar articles
AU Santos-Paulino - Understanding Small-Island Developing States, 2013