Trade deficit, financial deficit, and current account deficit of the United States have all been problems deeply concerned by economists and politicians in recent decades. Since the third season of 2000, a recession of the United States and the whole world has gradually started to appear. In addition, as a result of the 9/11 terrorist attacks and the war in Iraq the stock market has begun to decline significantly. In order to promote the recovery of its economy, the federal government determines to adopt the expanded financial policy which will most likely in the end cause its financial deficit more serious.
The main purpose of this paper is to investigate the factors that influence the current account deficit of the United States. Because the study considers foreign variables that related researches ignore, we choose five variables as follows: regional output differential, regional interest rate differential, terms of trade, regional real effective exchange rate, and current account. Therefore, we adopt the Unit Root Test, the Granger Causality Test, the Co-integrating Test, and SVAR (Structural Vector Autoregressive) model to run RATS and E-views.
It is the finding of empirical result that the United States government considers terms of trade and current account that can't be quantized of the first importance rather than the exchange rate factor that general research is thought. This is one of the contributions of the study.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0728105-013001 |
| Date | 28 July 2005 |
| Creators | Lai, Sue-ping |
| Contributors | Jia-hsi Weng, Ming-jang Weng, Yung-Hsiang Ying |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0728105-013001 |
| Rights | withheld, Copyright information available at source archive |
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