Current Account Balance in Emerging Asia

Arıç, Kıvanç Halil; Sek, Siok Kun; Sousa, Miguel Rocha de

doi:10.2478/sbe-2021-0002

Cited by 3 publications

(4 citation statements)

References 35 publications

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“…Furthermore, the exchange rate appreciation rapidly increases exports compared to imports, resulting in a surplus balance of payments. This is in line with [25], [36], [39], which found that foreign direct investment negatively affects the current account balance.…”

Section: Resultssupporting

confidence: 85%

“…FDI inflows have a favorable impact on the balance of payments due to the appreciation of the country's currency exchange rates. [36], [39] showed that foreign direct investment significantly affects the CA balance. Similarly, found that FDI had a significant positive effect on the CA balance.…”

Section: Datamentioning

confidence: 99%

“…The results showed that the real effective exchange rate significantly affects the CA balance. [39] examined the influence of GDP growth rate, expenditure growth, FDI, and real interest rate on the CA balance using a sample of developing Asian countries. The results showed that all variables significantly the CA balance.…”

Section: Introductionmentioning

confidence: 99%

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Exchange Rate and Current Account Balance: Evidence from ASEAN-5 Countries

Anwar,

Suhendra,

Ginanjar

et al. 2023

Proceedings of the International Conference on Sustainability in Technological, Environmental, Law, Management, Social and Econ

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The aim of this paper was to analyse the impact of the exchange rate and other macroeconomic variables on the current account (CA) balance in 5 Southeast Asia countries between 1991 and 2021. The analysis of this study employs panel data model with fixed effect estimation. The findings show that the currency rate negatively and significantly impacts the CA balance in ASEAN-5 countries. Furthermore, inflation has significantly negative impact, while economic growth and FDI positively and significantly affect the current account. Therefore, developing countries in Southeast Asia need to maintain their exchange rate to reduce the widening current account deficit and sustain positive investor sentiment. Furthermore, they need to increase economic growth, FDI inflows and reduce the inflation rate to increase the current account.

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Section: Resultssupporting

confidence: 85%

Section: Datamentioning

confidence: 99%

See 1 more Smart Citation

Exchange Rate and Current Account Balance: Evidence from ASEAN-5 Countries

Anwar,

Suhendra,

Ginanjar

et al. 2023

Proceedings of the International Conference on Sustainability in Technological, Environmental, Law, Management, Social and Econ

View full text Add to dashboard Cite

show abstract

“…With the presence of foreign capital, a country can increase the output of export-oriented industries and reduce the volume of imports. Research results byBedir & Soydan (2016) and alsoHalil et al (2021) obtained Foreign Investment (FDI), which has a major impact on the current account balance. As forAriyani et al (2018), attracting direct investment (FDI) harms the current account balance.…”

mentioning

confidence: 99%

The Effect of Foreign Direct Investment (Fdi), Investment Portfolio, Exchange Rate, and Inflation on Current Account Balance (Cab) With Corruption Perception Index (Cpi) as a Moderation Variable for the Period 1995-2022 in Asean-6

Wairooy,

Endraswati

2023

Bus. Management Analysis J.

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This study re-examines the effect of Foreign Direct Investment (FDI), portfolio investment, exchange rates, and inflation on the Current Account Balance (CAB), with the Corruption Perception Index (CPI) as a moderating variable for the 1995–2022 period in ASEAN-6. Hypothesis testing using MRA and panel data regression. This study took secondary data from The World Bank and Transparency International (TI). It used 168 samples obtained from six ASEAN countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The results showed that Foreign Direct Investment (FDI) had a significant negative effect on Current Account Balance (CAB), portfolio investment had a significant positive effect on Current Account Balance (CAB), and exchange rates and inflation had no effect on Current Account Balance (CAB). In addition, the moderating variable used, namely the Corruption Perception Index (CPI), is proven to be able to moderate the four independent variables with a significant negative effect. This research is limited to ASEAN-6 countries and only uses CPI as a moderating variable. Suggestions for further research should be replicated outside ASEAN-6 and consider other variables.

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The dynamic relationship between macroeconomic factors and current account balance: Panel evidence from 28 African countries

Fosu

2024

Development and Sustainability in Economics and Finance

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Current Account Balance in Emerging Asia

Cited by 3 publications

References 35 publications

Exchange Rate and Current Account Balance: Evidence from ASEAN-5 Countries

Exchange Rate and Current Account Balance: Evidence from ASEAN-5 Countries

The Effect of Foreign Direct Investment (Fdi), Investment Portfolio, Exchange Rate, and Inflation on Current Account Balance (Cab) With Corruption Perception Index (Cpi) as a Moderation Variable for the Period 1995-2022 in Asean-6

The dynamic relationship between macroeconomic factors and current account balance: Panel evidence from 28 African countries

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