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.

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.

scholarly journals Analysis of Current Account Deficit Determinants of Balance of Payments in Fixed and Flexible Exchange Rate Regimes: A Comparative Study in CFA Franc and Non-Franc Zones

2017 ◽  
Vol 3 (3) ◽  
pp. 447
Author(s):  
Remy Hounsou
Keyword(s):  
Current Account ◽  
Current Account Deficit ◽  
Flexible Exchange Rate ◽  
Balance Of Payments ◽  
Current Account Balance ◽  
Domestic Saving ◽  
Franc Zone ◽  
Financial Variables ◽  
The Impact ◽  
The Current Account

<p><em>This study compares the impact of certain economic and financial variables on the level of the deficit in the current account of the balance of payments of the countries of the Franc zone and certain countries of the non-Franc zone situated south of the Sahara. The empirical results of the study based on panel data models covering the period 1990-2015 indicate that none of the two zones behaves better against the current account deficit of the balance of payments and that no zone is more competitive than the other. Finally, it was clear from our analysis that the variables of gross domestic, saving and the change in the terms of trade better explain the change in the current account balance in the Franc zone, whereas the variables of net foreign transfers and gross domestic saving impact the most the current account deficit in non-CFA zone.</em></p>

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.

Bhutan - Assessment Letter for the World Bank

Policy Papers ◽  
2012 ◽  
Vol 2012 (97) ◽  
Author(s):  
Keyword(s):  
World Bank ◽  
Current Account ◽  
Current Account Deficit ◽  
Gdp Growth ◽  
Medium Term ◽  
The World Bank ◽  
The World ◽  
The Current Account

Bhutan's growth has remained robust, but the current account deficit has widened. • Bhutan's economy has expanded at a robust pace driven by the hydropower sector developments. GDP growth is estimated at nearly 8 percent in 2011/12 (from 8.5 percent in 2010/11), and is projected to reach 12.5 percent in 2012/13 due to the acceleration in hydropower-related construction. Inflation has risen, reaching 13.5 percent in 2012Q2, with both food and nonfood components accelerating. Bhutan’s medium-term outlook is favorable, as growth should remain strong at around 8-9 percent over the medium term, driven by developments in the hydropower sector, manufacturing, and domestic services.

scholarly journals Structural and cyclical factors of Serbia’s current account

2018 ◽  
Vol 63 (217) ◽  
pp. 75-97 ◽  
Author(s):  
Radovan Kovacevic
Keyword(s):  
Current Account ◽  
Structural Changes ◽  
Current Account Deficit ◽  
Current Account Balance ◽  
Full Time ◽  
Structural Factors ◽  
Crisis Period ◽  
The Impact ◽  
The Current Account

This paper examines the impact of structural and cyclical factors on Serbia?s current account. We have applied several filters to turn off the long-term (structural) component and isolate the influence of cyclical factors. In this paper, we show that structural factors were more important determinants of the current account deficit in the full-time sample (1997-2016), while cyclical factors showed a stronger impact in the post-crisis period when the deficit was reduced. Although they lost their intensity during the crisis and in the post-crisis period, the structural factors determine the trend of the current account balance in the long-term. For further improvement of the current account, measures to increase exports should be taken. The structural changes of production, the wider range of support for export financing to small and medium-sized enterprises, and the application of advanced technologies in manufacturing could help to reduce the trade deficit, making the current account deficit sustainable.

The Effect of Energy Importation from Russia on Turkey's Current Account Deficit

2019 ◽  
Vol 8 (4) ◽  
pp. 29-46
Author(s):  
Tuna Erkılıç ◽  
Dilek Temiz Dinç ◽  
Aytaç Gökmen ◽  
Mehmet Yazıcı
Keyword(s):  
Economic Development ◽  
Current Account ◽  
Current Account Deficit ◽  
Econometric Methods ◽  
Social And Economic Development ◽  
The World ◽  
Energy Trade ◽  
The Republic ◽  
Republic Of Turkey

Energy is a fundamental input of social and economic development of a country. Yet, some of the countries in the world are rich in terms of energy and some countries lack the necessary amount of energy they require. The Republic of Turkey is situated at the threshold of Eurasia and is close to the richest energy basins of the world in its vicinity. However, Turkey is not self-sufficient in terms of energy and in order to correspond to its increasing energy necessity, it must import energy from neighboring countries, mainly from Russia. Moreover, the aim of this study is to analyze the energy trade of Turkey with Russia and its impact on its current account deficit. In order to analyze this issue, various econometric methods are utilized in this study. With respect to this analysis, it is evident that the energy importation of Turkey from Russia leads to an increase in its current account deficit.

The Impact of Current Account Deficit on Economic Growth: An ARDL Approach

2020 ◽  
Vol 21 (1) ◽  
pp. 76-92
Author(s):  
Tamma Reddy ◽  
T. Sita Ramaiah
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Current Account ◽  
Unit Root ◽  
Current Account Deficit ◽  
External Debt ◽  
Unit Root Test ◽  
Output Growth ◽  
The Impact ◽  
The Current Account

In this study, we examine the linkages between External debt, Exchange rate, Current account deficit, and GDP at Factor cost for India over the period of 1975-76 to 2018- 19 using the Unit root test and Autoregressive Distributed Lag (ARDL). The results of the unit root test reveal that GDP growth rate and External debt are integrated at the level I(0); while the Current Account deficit and Exchange rate are integrated at first order I(1). The results of the ARDL technique reveal that the current account deficit has a positive and significant impact on Real GDP. It clearly reflects the role of imports in accelerating the growth of a developing economy like India. There is also evidence that the external debt has a positive and significant impact on the Current account deficit while the Exchange rate does not have an impact on the Current account deficit. The authors opine that the external debt assists in a gradual reduction in the current account deficit and contributes to economic growth by narrowing down the saving-investment gap. As the demand for Indian exports is inelastic in the global market, the country has not benefitted from the depreciation of its currency. The authors stressed the need for focusing on further diversification of its export markets, creating a conducive environment for attracting longer-term FDIs, liberalization, promoting commercial services exports, and achieving exchange rate stability in the context of the USA-China trade war and stagnation in the world output growth. Huge untapped potential for IT-enabled services should be exploited to promote service trade. The authors point out the current account deficit in the range of 2-3 percent of GDP can be manageable.

scholarly journals Détermination Du Seuil De Viabilité De La Position Extérieure Au Maroc: Evaluation Empirique

2018 ◽  
Vol 14 (7) ◽  
pp. 32
Author(s):  
Abdellali Fadlallah ◽  
Zakaria Chakhat
Keyword(s):  
Current Account ◽  
Current Account Deficit ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Explanatory Variables ◽  
Vector Error ◽  
Econometric Study ◽  
The Impact ◽  
The Current Account

This paper focuses on addressing question on the sustainability of the Moroccan current account. The purpose of this study is to examine theoretical and empirical determinants of the behaviour of the current account deficit in order to apprehend economic policy decisions. An econometric study was conducted in this sense using a vector error-correction model (VECM) during the period (2004Q1-2013Q4). This technique enabled the capture of the longterm relationship. the impact of explanatory variables on the current account was also examined. The examination of the sustainability threshold calculated by the Reisena method revealed that signs of unsustainability have emerged since 2008, which is in line with the results of MFR. However, it is only in 2011 that the current account exhibits deficits that largely exceed the optimal threshold, exposing the national economy to greater vulnerability.

scholarly journals The effect of fiscal deficits on the external imbalances in the European Union

2020 ◽  
pp. 17-17
Author(s):  
Kosta Josifidis ◽  
Dragutinovic Mitrovic ◽  
Sladjana Bodor
Keyword(s):  
European Union ◽  
Current Account ◽  
Current Account Deficit ◽  
Fiscal Deficit ◽  
The European Union ◽  
External Imbalances ◽  
Econometric Methods ◽  
Long Run ◽  
The Impact ◽  
The Current Account

This paper analyzes the effect of the fiscal deficit on the current account deficit in the European Union during the period 1995-2018. The purpose is to examine to what extent an increase in government spending affects the deterioration of terms of trade and contributes to increasing external imbalances. Econometric methods for heterogeneous panel data models are used to analyse the existence of a long-run relationship between the fiscal deficit and the current account. The empirical findings indicate that the twin deficits hypothesis is not confirmed for the whole European Union, but only for a certain number of member states, where a long-run relationship still exists, confirming the impact of the fiscal deficit on the current account.

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