Modelización macroeconométrica del ahorro y la inversión para los países del Mercosur

In the long run, the present value of current account balance cannot grow indefinitely large without precipitating in a macroeconomic crisis. This simple insight produces an econometrically testable relationship between saving and investment. We use data for four countries, which belong to the MERCO...

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Bibliographic Details
Main Authors: Sinha, Tapen, Sinha, Dipendra
Format: Online
Language:English
Editor: El Colegio de México, A.C. 1998
Subjects:
Online Access:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/241
Journal:

Estudios Económicos

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Summary:In the long run, the present value of current account balance cannot grow indefinitely large without precipitating in a macroeconomic crisis. This simple insight produces an econometrically testable relationship between saving and investment. We use data for four countries, which belong to the MERCOSUR Common Trade Agreement: Argentina Brazil Paraguay and Uruguay. The results indicate that there is no long run relationship between saving and investment in these countries. Thus MERCOSUR IS likely to act as a palliative against such a possibility in the future.