Current Account Determinants for Oil-Exporting Countries

Abstract

The paper characterizes the main determinants of the medium-term current account balance for oil-exporting countries using dynamic panel estimation techniques. It includes a large number of oil-exporting countries and extends the specifications commonly used in the literature to include an oil wealth variable as well as a proxy for the degree of maturity in oil production. The results reveal that factors that matter in determining the equilibrium current account balance of oil-exporting counties are fiscal balance, oil balance, oil wealth, age dependency, economic growth, and degree of oil production-related imports.

Major Determinants of Current Account in Russia

“…The government of the Russian Federation should not rely on the mineral resource wealth which in some periods improves current account but these improvements are not sustainable. For example Morsey (2009) in its empirical study on 28 oil-exporting economies found evidence that oil wealth even has a negative influence on the current account balances. This study uncovered country-specific effects of selected determinants on the current account, where some of them are different from theoretically predicted effects.…”

“…This study attempted to find determinants that can explain changes in the current account balance of the Russian Federation and to investigate if energy prices have significant effects on the current account as is predicted by the literature for oil exporting countries, see for example Morsey (2009). This paper investigated the existence of long-run relations in the current account model between variables such as: current account balance and national savings, investments, government savings, real exchange rate, trade openness, balance of trade, natural gas prices and petroleum prices.…”

“…The purpose of these studies is to explain long-run, medium or short-run dynamics of current accounts by specifying comprehensive cross-country panel regression models. For example these studies include Khan and Knight (1983); Debelle and Faruqee (1996); Calderon et al (2002); Chinn and Prasad (2003); Zanghieri (2004); Aristovnik (2007Aristovnik ( , 2008; Calderon et al (2007); Herwartz and Siedenburg (2007); Morsey (2009) and others. Another type of studies focuses on country-specific models, generally employing vector autoregressive and vector error correction models.…”

A Benefit Analysis of Electric Vehicle Battery Swapping and Leasing Modes in China

“…Energy shortage and climate deterioration are the major issues concerning the whole world (Morsy 2012). Electric vehicle (EV) is widely recognized as an effective alternative technology to mitigate the energy crisis and environmental problems; thus increasing numbers of countries have made EV promotion a national strategy.…”

Fiscal policy and current account in an oil-rich economy: the case of Nigeria

“…Many related empirical studies (Morsy 2009;Bems and Filho 2009;Arezki and Hasanov 2009;Takebe and York 2011;Beidas-Strom and Cashin 2011;Egwaikhide 1997;Egwaikhide et al 2002;Chete 2001;Okojie 2005;Olumuyiwa 2008), including the case of Nigeria, have been carried out with a view to investigating the link between fiscal policy and the current account in oil-exporting countries. The findings of all these studies confirm that fiscal policy has a significant impact on a country's current account.…”