TY - JOUR AU - Sinha, Tapen AU - Sinha, Dipendra PY - 1998/01/01 Y2 - 2024/03/28 TI - Macroeconometric modeling of saving and investment for Mercosur countries JF - Estudios Económicos de El Colegio de México JA - EE VL - 13 IS - 1 SE - Articles DO - 10.24201/ee.v13i1.241 UR - https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/241 SP - 57-72 AB - <p>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.</p> ER -