Current Account Balance Analysis of ASEAN Countries

The purpose of this paper is to provide a practical tool for binomial proportion in two sample studies. This binomial proportion of two sample analysis is a special case because it deals with discrete data. A discrete data is a categorical data where the category of interest is designated as 1 else 0. The data used in this paper comes from the IMF’s annual report for World Economic Outlook. We extracted the current account balance as a percentage of the GDP as the unit of analysis. The countries of focus are the 10 countries in the ASEAN. The research question is “which country in the ASEAN effectively manage its economy on the basis of current account balance as a percentage of the GDP?” We defined positive current account balance as 1 and negative value as 0. The study period runs from 2005 to 2014. We found that no country in the ASEAN had significant positive current account balance.