Advanced Search
MyIDEAS: Login to save this article or follow this journal

Current Account Deficits and Implications on Country Risk of Romania

Contents:

Author Info

  • Georgescu, George

    ()
    (Senior Researcher, Institute of National Economy, Romanian Academy)

Abstract

This study focuses on the implications of current account deficit upon the external debt increase in Romania, revealing higher risks for the sustainability of its international financial position. Considering the trade deficit as a main cause of current account balance deterioration, several exports weaknesses are pointed out, mostly resulted from neglecting both slowing IPT flows and growing FDI stock adverse effects. Under the circumstances of diminishing contribution of compensatory flows to the current account deficit coverage, an increasing share of autonomous flows is expected. But an excessive rise in the long-term external debt, including its service level, could have negative effects on Romania’s country rating, i.e. on the external financing costs and borrowing ceiling of the international capital markets. For preventing a possible financial turmoil turning into a “hard landing” of the economy the Romanian, firstly by admitting the risks occurring from current account deficits and accelerated debt accumulation, by sound monetary and fiscal policies, promoting structural reform and exports.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ipe.ro/rjef/rjef4_07_6/
Download Restriction: no

Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal of Economic Forecasting.

Volume (Year): 4 (2007)
Issue (Month): 4 (December)
Pages: 88-96

as in new window
Handle: RePEc:rjr:romjef:v:4:y:2007:i:4:p:88-96

Contact details of provider:
Postal: Casa Academiei, Calea 13, Septembrie nr.13, sector 5, Bucureşti 761172
Phone: 004 021 3188148
Fax: 004 021 3188148
Email:
Web page: http://www.ipe.ro/
More information through EDIRC

Related research

Keywords: Foreign Trade; Foreign Direct Investments; Current Account; Balance of Payments; External debt; Economic Growth; Country Risk;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Kaminsky, Graciela & Schmukler, Sergio, 2001. "Emerging markets instability: do sovereign ratings affect country risk and stock returns?," Policy Research Working Paper Series 2678, The World Bank.
  2. Sebastian Edwards, 2004. "Thirty Years of Current Account Imbalances, Current Account Reversals, and Sudden Stops," IMF Staff Papers, Palgrave Macmillan, vol. 51(s1), pages 1-49, June.
  3. Sebastian Edwards, 2004. "Thirty Years of Current Account Imbalances, Current Account Reversals and Sudden Stops," NBER Working Papers 10276, National Bureau of Economic Research, Inc.
  4. Georgescu, George, 2007. "Deficitul de cont curent: Maladie cronică a economiei româneşti ?
    [Current Account Deficits: A Chronic Disease of the Romanian Economy?]
    ," MPRA Paper 24851, University Library of Munich, Germany.
  5. Georgescu, George, 2006. "Inward Processing Trade and Implications for the Balance of Payments Current Account (The Case of Romania)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 3(1), pages 24-31, March.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Susanu, Monica, 2009. "Convergence to EMU through the Test of the Public Finance –Romania’s Budgetary Deficit and Public Debt," MPRA Paper 20480, University Library of Munich, Germany.
  2. Georgescu, George, 2012. "Fluxurile ISD in contextul crizei globale
    [The FDI flows under the global crisis effects]
    ," MPRA Paper 40842, University Library of Munich, Germany.
  3. Zaman, Gheorghe & Georgescu, George, 2011. "Sovereign risk and debt sustainability: warning levels for Romania," MPRA Paper 32924, University Library of Munich, Germany.
  4. Georgescu, George, 2012. "Impactul crizei globale asupra structurii comerţului exterior al României
    [The Global Crisis Impact on Romanian Trade Structure]
    ," MPRA Paper 36339, University Library of Munich, Germany.
  5. George GEORGESCU, 2012. "Changes In The Pattern Of Romania’S Foreign Trade Under The Global Crisis Impact," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 139-159, December.
  6. Zaman Gheorghe, 2011. "Challenges, Vulnerabilities And Ways Of Approach In Romania'S External Debt Sustainability," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(special), pages 11-44, July.
  7. Georgescu, George, 2013. "România în perioada post-criză: investiţiile străine directe şi efecte asupra echilibrului financiar extern
    [Romania in post-crisis period: foreign direct investments and effects on external
    ," MPRA Paper 46531, University Library of Munich, Germany.
  8. Marian Dobranschi, 2010. "The sustainability of public debt in Romania in economic and financial crisis," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 15.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:rjr:romjef:v:4:y:2007:i:4:p:88-96. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Corina Saman).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.