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| Mei-yin Lin and Hui-hua Wang |
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| ''What Causes the Volatility of the Balancing Item?'' |
| ( 2009, Vol. 29 No.4 ) |
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| This paper analyzes the impacts of timing errors, capital flows and economic openness on the behavior of the balancing item. We choose Norway, Sweden, Philippines and South Africa as sample countries where the size of the balancing item is often excess the IMF's criterion of ‘smallness'. The empirical results show that the sources of the volatility of the balancing item are different among these four countries. |
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| Keywords: Balancing item, Balance of payments |
JEL: F3 - International Finance: General
C3 - Time-Series Models |
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| Manuscript Received : Jun 27 2009 | | Manuscript Accepted : Oct 29 2009 |
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