The purpose of this paper is to empirically investigate the causality pattern between current account (CA)
with the components in financial account (FA) for the four crisis-affected Asian countries of Indonesia,
Korea, the Philippines and Thailand. The sample periods are divided into two non-overlapping sub-periods
namely; pre-crisis (1987Q1 – 1996Q4) and post-crisis (1997Q1 –2006Q4). Empirical results clearly
suggest that CA Granger causes FA in these countries for the two sampling periods. Observations imply
that causality patterns differ for each of the FA components with CA
