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Abstract

The paper aims at characterizing the main determinants of the medium-term current account balance for oil-exporting countries using dynamic panel estimation techniques. Previous studies included a very limited number of oil-exporting countries in their samples, raising concerns about the applicability of the estimated coefficients for oil countries. Furthermore, current approaches are not specifically tailored to oil-producing countries because they fail to capture the effects of oil wealth and the degree of maturity in oil production. This paper explores the underlying determinants of the current account balance for a large sample of oilexporting 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 paper therefore contributes to the existing literature both in terms of the sample studied as well as the variables considered. The results reveal that factors that matter in determining the equilibrium current account balance of oil-exporting counties are the fiscal balance, the oil balance, oil wealth, age dependency, and the degree of maturity in oil production.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 09/28.

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Length: 39
Date of creation: 01 Feb 2009
Date of revision:
Handle: RePEc:imf:imfwpa:09/28

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Related research

Keywords: Current account balances; Oil exporting countries; Oil production; Oil revenues; Economic growth; Economic models;

Other versions of this item:

This paper has been announced in the following NEP Reports:

• NEP-ALL-2009-03-28 (All new papers)
• NEP-ARA-2009-03-28 (Arab World)
• NEP-ENE-2009-03-28 (Energy Economics)
• NEP-OPM-2009-03-28 (Open Economy Macroeconomic)

References

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Citations

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Cited by:

1. Robert C. York & Misa Takebe, 2011. "External Sustainability of Oil-Producing Sub-Saharan African Countries," IMF Working Papers 11/207, International Monetary Fund.
2. Syed Jawaid & Syed Raza, 2013. "Dynamics of Current Account Deficit: A Lesson from Pakistan," Transition Studies Review, Springer, vol. 19(3), pages 357-366, February.
   
   • Syed tehseen, jawaid & Raza, Syed Ali, 2012. "Dynamics of Current Account Deficit: A Lesson from Pakistan," MPRA Paper 38999, University Library of Munich, Germany.
3. Irineu E. Carvalho Filho & Rudolfs Bems, 2009. "Exchange Rate Assessments: Methodologies for Oil Exporting Countries," IMF Working Papers 09/281, International Monetary Fund.
4. Philipp an de Meulen, 2011. "Labor Heterogeneity and the Risk of Expropriation in Less Developed Countries," Ruhr Economic Papers 0298, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
5. Natalya Ketenci, 2010. "Major Determinants of Current Account in Russia," Transition Studies Review, Springer, vol. 17(4), pages 790-806, December.
6. Paul Cashin & Samya Beidas-Strom, 2011. "Are Middle Eastern Current Account Imbalances Excessive?," IMF Working Papers 11/195, International Monetary Fund.
7. Klaus Schmidt-Hebbel, 2012. "Fiscal Institutions in Resource-Rich Economies: Lessons from Chile and Norway," Documentos de Trabajo 416, Instituto de Economia. Pontificia Universidad Católica de Chile..
8. Harms, Philipp & Méon, Pierre-Guillaume, 2011. "An FDI is an FDI is an FDI? The growth effects of greenfield investment and mergers and acquisitions in developing countries," Proceedings of the German Development Economics Conference, Berlin 2011 38, Verein für Socialpolitik, Research Committee Development Economics.

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