Current Account Deficits in the EU Candidate and Potential Candidate Countries: A Panel Analysis

Bucevska, Vesna

doi:10.1515/ethemes-2017-0017

Cited by 4 publications

(4 citation statements)

References 7 publications

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“…2017;Bošnjak, 2019). This is also the case with the RS (Table 1), where the level and dynamics of the CAD is primarily determined by the negative balance of goods (Boljanović 2012;Bucevska, 2017, Kovačević 2018. The BoP imbalance is further deepened by the primary income deficit as a result of higher expenditures (outflows) than income from investments.…”

Section: The Role Of Surplus Componentsmentioning

confidence: 90%

Challenges of financing the current account deficit of the Republic of Serbia

Čakajac,

Janković,

Dimitrijević

2024

EurJ Appl Econ

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Developing countries, including the Republic of Serbia, due to the lack of capital and the disparity between domestic accumulation and investment spending find a solution for financing the current account deficit in the import of foreign capital, which results in financial balance surpluses. In conditions of insufficient inflow of foreign capital, an additional source of financing the balance of payments imbalance is borrowing abroad. The aim of the research is to identify the key sources of financing the current account deficit of the Republic of Serbia in the 2007-2022 period. The research results suggest that, although during the last few years the coverage of the current account deficit is largely provided by the net inflow of foreign direct investments, these funds are still not sufficient to ensure the financing of the deficit components of the current account of the Republic of Serbia. This is greatly contributed by the fact that one of the main deficit components is precisely the ever-increasing outflow of income that is realized on the basis of these investments. Due to all of the above, borrowing abroad is still used as an option for financing the deficit.

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Section: The Role Of Surplus Componentsmentioning

confidence: 90%

Challenges of financing the current account deficit of the Republic of Serbia

Čakajac,

Janković,

Dimitrijević

2024

EurJ Appl Econ

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“…According to [27], trade openness significantly affects the CA balance. furthermore, [23], [37] found that trade openness has a significant positive impact on the CA balance.…”

Section: Datamentioning

confidence: 91%

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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“…Denisia (2010) points out that benefits of FDI inflows in less developed countries are alternative source of financing substituting the country indebtedness, greater inflow of foreign currency, access to international markets and exports rise. Bucevska (2017) showed that FDI have positive impact on the current account in the candidate countries and potential candidate countries for EU submission, but significant only in the two panel estimation models (Albania, Croatia, North Macedonia, Serbia and Turkey) in the time period (Q12005-Q42015). The author concludes that FDI contribute to the growth of available capital stock and rise in exports industries along with the low contribution in domestic manufacturing and service industry.…”

Section: Literature Reviewmentioning

confidence: 96%

The nexus between FDI and external balance in selected Emerging European Economies: A panel data approach

Ercegovac¹,

Pucar²

2022

Anali Ekon fak Subotica

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This research focuses on the nexus between foreign direct investments (FDI) and external balance in selected Emerging European Economies (EEEs). Emerging countries in convergence process tend to have problem of structural external imbalance that is covered with foreign capital inflows. FDI are long-term and sustainable source of financing the current account deficit. The aim of this paper is to test if FDI together with chosen macroeconomic indicators are relevant factors of trading balance in EEEs in order to give useful implications towards economic policy creators in emerging economies. The research hypothesis is tested with robust micro panel models for total sample and two subperiods: before and after the structural break caused with Global financial crisis (GFC). The results indicate that substantial FDI inflows are significantly related with negative sum of trading balance on the total sample level i.e. average external position deficit is financed with the FDI inflows. Also, dummy variable for the Western Balkans indicates that FDI are significant variable that finances external imbalance in this subsample. The government policy recommendations are directed towards incentive measures for attracting greater FDI inflows, especially greenfield investments motivated with greater efficiency and export stimulation in order to stabilize trading balance and foster economic growth.

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Current Account Deficits in the EU Candidate and Potential Candidate Countries: A Panel Analysis

Cited by 4 publications

References 7 publications

Challenges of financing the current account deficit of the Republic of Serbia

Challenges of financing the current account deficit of the Republic of Serbia

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

The nexus between FDI and external balance in selected Emerging European Economies: A panel data approach

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