JOURNAL ARTICLE

The Extent, Excessiveness and Sustainability of Afghanistan's Current Account.

  • Published In: Foreign Trade Review, 2026, v. 61, n. 2. P. 210 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Sultani, Abdul Hadi; Faisal, U. 3 of 3

Abstract

This article empirically analyzes the extent, excessiveness, and sustainability of Afghanistan's current account (CA) deficits from 2004 to 2019 using the intertemporal approach and present value model. Findings indicate that Afghanistan's actual CA deficits are excessive and significantly deviate from the optimal CA predicted by the model, reflecting problematic imbalances. Sustainability tests reveal that the CA deficits are unsustainable due to the lack of co-integration between exports and imports and between real net output and private consumption, highlighting structural weaknesses in domestic production and export competitiveness. The study recommends increasing domestic output, improving savings and investment, reducing imports, and enhancing export promotion to improve the CA balance and ensure long-term economic stability.

Additional Information

  • Source:Foreign Trade Review. 2026/05, Vol. 61, Issue 2, p210
  • Document Type:Article
  • Subject Area:Geography and Cartography
  • Publication Date:2026
  • ISSN:0015-7325
  • DOI:10.1177/00157325241239724
  • Accession Number:192795592
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