scholarly journals ESTIMATION OF BALANCE OF PAYMENTS OF UKRAINE

2021 ◽  
Author(s):  
Volodymyr Tyshchenko ◽  
Olena Tyshchenko
Keyword(s):  
Current Account ◽  
The State ◽  
Balance Of Payments ◽  
Current Account Surplus ◽  
Foreign Economic Policy ◽  
Goods And Services ◽  
Financial Account ◽  
Positive Balance ◽  
Main Components ◽  
The Current Account

The article highlights the features of the formation and assessment of the balance of payments in Ukraine. The balance of payments of Ukraine is a functional macroeconomic model that reflects all transactions that are carried out between the subjects of the national economy and the subjects of the economies of other countries of the world. This model allows you to develop and implement a sound foreign economic policy of Ukraine, analyze the state of commodity and financial markets, conduct scientific research of economic processes in the state, etc. Ukraine is actively implementing the methodology of balance of payments formation according to the recommendations of the International Monetary Fund. Ukraine's balance of payments by main components is grouped into two accounts: "capital and financial transactions" and "current transactions": capital transactions cover all transactions related to the receipt or payment of capital transfers and the acquisition or sale of property rights and non-financial assets; current transactions include all transactions between residents and non-residents on real values, as well as transactions on the free provision or receipt of valuables for current use. Like any other "balance of payments" consists of receipts and payments. It is active (surplus) when revenues are greater than payments and passive (deficit) when payments are greater than revenues. Based on the assessment of the balance of payments of Ukraine for 2020, certain conclusions can be drawn: stable external demand for food softened the drop in exports of goods from Ukraine during the COVID-19 pandemic, and the increase in prices contributed to its growth at the end of 2020; despite a slight recovery in domestic demand in the IV quarters of 2020, imports of goods to Ukraine by the results of 2020 decreased significantly; the current account surplus in Ukraine in 2020 was provided by a significant positive balance of trade in services and a record surplus of the primary income account; capital outflow from Ukraine on the financial account stopped at the end of 2020 due to the optimism of investors; despite the crisis and significant payments on external debt, Ukraine's gross reserves increased in 2020, and the financial crisis once again confirmed the importance of both international support and a balanced macroeconomic policy. The current account surplus in Ukraine in 2020 reached one of the largest levels in the history of Ukraine, it was formed due to a significant decrease in imports of goods and services, a reduction in payments on primary income and the relative stability of exports of goods and remittances. The article proposes recommendations for improving approaches to the formation of the balance of payments in Ukraine using certain methods when regulating the balance of payments of the state.

scholarly journals The Connection between the Exchange Rate and the Balance of Payments Accounts in the Czech Republic: An Econometric Approach

2017 ◽  
Vol 8 (1) ◽  
pp. 58-71
Author(s):  
Tomáš Urbanovský
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Granger Causality ◽  
Current Account ◽  
Balance Of Payments ◽  
Nominal Exchange Rate ◽  
Current Account Balance ◽  
The Czech Republic ◽  
Financial Account ◽  
The Current Account

Relationships between the nominal exchange rate, the current account and the financial account of the balance of payments in the Czech Republic are investigated in this presented paper. The implemented cointegration analysis and vector error correction model suggest one pair of Granger causality. It has been discovered that change in the current account balance Granger-causes a change in financial account balance. This relationship has the nature of two-way Granger causality, which means that a reversed relationship holds as well. Other relationships implying Granger causality were not found. Error terms were significant only in regressions with both accounts as dependent variables, which imply that only these variables return to their long-term equilibria. Because an increase in financial account surplus leads to a decrease in current account surplus (or deepening the current account deficit), excessive liberalization of the Czech financial system can lead to a large capital inflow, jeopardizes current account sustainability and results in a currency crisis in the Czech economy.

scholarly journals Analysis of the financial account of the Republic of Serbia in the period from 2010-2018

2020 ◽  
Vol 14 (1) ◽  
pp. 66-79
Author(s):  
Sanja Bakić
Keyword(s):  
Current Account ◽  
Current Account Deficit ◽  
Balance Of Payments ◽  
Foreign Investors ◽  
Financial Account ◽  
The World ◽  
The Subject ◽  
The Republic ◽  
The Impact ◽  
The Current Account

A country's balance of payments represents transactions between one country and the rest of the world. The subject of the research is the analysis of the period from 2010 to 2018 and the presentation of the impact of positions of goods, services, primary income and personal transfers on the current account of the balance of payments, as well as covering current balance positions through capital. The aim of the research in this paper is to examine the importance of opening the borders of the Republic of Serbia and enabling the entry of foreign investors. The expected results of the research should indicate the way to reduce the current account deficit, the balance of payments itself, as well as the economic development and stability of the country.

THE POTENTIAL OF CUSTOMS PAYMENTS IN THE MODERN REALITIES OF TRADE RELATIONS WITH THE EAEU AND EU COUNTRIES

2021 ◽  
Vol 2 (2) ◽  
pp. 149-156
Author(s):  
I. A. ZHURAVLEVA ◽  
Keyword(s):  
Division Of Labor ◽  
Value Chain ◽  
Trade Balance ◽  
The State ◽  
Balance Of Payments ◽  
Economic Relations ◽  
Eu Countries ◽  
Trade Relations ◽  
Goods And Services ◽  
Important Regulator

Customs payments are an important regulator of the country's economic presence in foreign economic relations and trade relations. Customs receipts serve as a landmark indicator that provides the revenue side of the budget in its significant income, and also determine the place of the state in the system of the interna-tional division of labor and its corresponding place in the value chain. Customs duties (CD) act as a kind of regulator of the amount of goods imported into the territory of the state, taking into account the state and conditions of the domestic market and the country's balance of payments. The positive financial and economic multifactorial nature of CD is manifested in stimulating the optimization of the structure of imports of goods and services, and in addition, it can act as a tool to protect domestic producers from external competitors, and strengthen the state's trade balance.

What Explains Current Account Surplus in Korea?

2018 ◽  
Vol 17 (2) ◽  
pp. 70-93
Author(s):  
Chirok Han ◽  
Kwanho Shin
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Current Account ◽  
Current Account Balance ◽  
Budget Deficits ◽  
Current Account Surplus ◽  
Short Run ◽  
The Right ◽  
The Impact ◽  
The Current Account

Since the currency crisis in 1998, Korea has experienced continuous current account surpluses. Recently, the current account surplus increased more rapidly—amounting to 7.7 percent of GDP in 2015. In this paper, we investigate the underlying reasons for the widening of Korea's current account surpluses. We find that the upward trend in Korea's current account surpluses is largely explained by its demographical changes. Other economic variables are only helpful when explaining short run fluctuations in current account balances. Moreover, we show that Korea's current account surplus is expected to disappear by 2042 as it becomes one of the most aged economies in the world. Demographic changes are so powerful that they explain, quite successfully, the current account balance trends of other economies with highly aged populations such as Japan, Germany, Italy, Finland, and Greece. When we add the real exchange rate as an additional explanatory variable, it is statistically significant with the right sign, but the magnitude explained by it is quite limited. For example, to reduce the current account surplus by 1 percentage point, a 12 percent depreciation is needed. If Korea's current exchange rate is undervalued 4 to 12 percent less than the level consistent with fundamentals, it is impossible to reduce Korea's current account surplus to a reasonable level by adjusting the exchange rate alone. Another way to reduce current account surplus is to expand fiscal policies. We find, however, that the impact of fiscal adjustments in reducing current account surplus is even more limited. According to our estimates, reducing the current account surplus by 1 percentage point requires an increase in budget deficits (as a ratio to GDP) of 5 to 6 percentage points. If we allow endogenous movements of exchange rate and fiscal policy, the impact of exchange rate adjustment increases by 1.6 times but that of fiscal policy decreases that it is no longer statistically significant.

Chapter I. The Home Economy

1987 ◽  
Vol 121 ◽  
pp. 6-20
Keyword(s):  
Growth Rate ◽  
Current Account ◽  
Peak Level ◽  
Balance Of Payments ◽  
Capacity Utilisation ◽  
The Uk ◽  
First Time ◽  
The Current Account

For the first time in more than a decade the question is being asked whether the growth of the UK economy this year may be, in some sense, too rapid. Fears have been expressed of ‘overheating’ leading to a rise in inflation and excessive growth in imports. Comparisons have been made with the ‘boom’ conditions of 1972 and 1973. In our view these fears are exaggerated and the comparisons misleading. Nevertheless some increase in the rate of inflation is to be expected, and the underlying position on the current account of the balance of payments seems already to have moved from surplus into deficit. We now expect the rate of the economy this year to be around 3½ per cent, compared with about 3 per cent in 1986. Thus, if we are correct, the acceleration year on year is very slight, well within the error margins of measurement. This contrasts with 1972 and 1973 when the growth rate averaged 4½ per cent for two years. Moreover unemployment was only about 1 million at the beginning of 1972 and about 1/2 million at the end of 1973 whilst last year it at over 3 million and is not expected to fall as low as 2½ million even next year. Even if inflation next year does rise from about 3½ per cent a year to about 5 per cent, as we expect, this is still not comparable with the rates of 7½ and 9 per cent experienced in 1972 and 1973. The CBI index of capacity utilisation is now not far below its peak level in 1973, but we doubt whether an index of this kind is reliable for comparision between periods so far apart in time.

The long run influence of pension systems on the current account

2019 ◽  
Vol 20 (1) ◽  
pp. 67-101
Author(s):  
Thomas Davoine
Keyword(s):  
Current Account ◽  
Overlapping Generations ◽  
Current Account Balance ◽  
Current Account Surplus ◽  
Pension Systems ◽  
Long Run ◽  
Funded Pensions ◽  
Future Consumption ◽  
Cross Country ◽  
The Current Account

AbstractExplaining cross-country differences in current accounts is difficult. While pay-as-you-go pensions reduce the need to save for retirement, contributions to capital-funded pensions are saved for future consumption. An overlapping-generations analysis shows that capital-funded pensions increase net foreign assets holdings. With a multi-pillar system whose capital-funded part accounts for 18% of pensions, the Austrian current account balance would be 1 percentage point of gross domestic product (GDP) higher than with pure pay-as-you-go pensions in 20 years. By comparison, the Austrian current account surplus averages 1.8% of GDP. Empirically, I find that the current account of high-income countries increases with the coverage and replacement rates of capital-funded pensions.

scholarly journals Implications of the U.S. Current Account Deficit

1989 ◽  
Vol 3 (4) ◽  
pp. 153-165 ◽  
Author(s):  
David H Howard
Keyword(s):  
United States ◽  
Current Account ◽  
Current Account Deficit ◽  
Analytical Framework ◽  
The United States ◽  
Balance Of Payments ◽  
The World ◽  
The U.S ◽  
The Current Account

In 1988, the United States recorded a deficit of about $135 billion on the current account of its balance of payments with the rest of the world. This paper presents an analytical framework for thinking about the current account deficit, explores causes of the current account deficit, and discusses the United States as a debtor nation and the issue of sustainability.

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