The Determinants of Current Account in the Southeast Asian Countries

This study aimed to identify the macroeconomic factors impacting current account in Southeast Asian countries, namely, Vietnam, Malaysia, Philippines, Singapore and Thailand, from Q1/2005 - Q2/2016. The results of the study show that the determinants of current account are net foreign assets, trade openness, relative income, real multilateral exchange rates. Depending on the economic conditions in each country, the determinants of current account are in different directions. In this study, the author uses Johansen-Juselius cointegration test method with VECM (vector error correction model) in Vietnam, Malaysia, Philippines, Singapore, Thailand to determine the relationship between the current account and the macroeconomic variables mentioned above in the short term and long-term.