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Structural and cyclical factors of Greece’s current account balances: a note

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  • Ioanna C. Bardakas

    (Bank of Greece)

Abstract

This note examines the relative importance of cyclical and structural factors in determining Greece’s current account performance. I use a number of filters to remove the long-term component and isolate the cyclical factors. It is shown that for the last 15-years the structural component explains most of the variation in the current account. Cyclical factors show a small increase in importance during the economic crisis. Thus, for any improvement in the current account to become permanent emphasis should be placed, among others, on the adjustment of structural factors such as the development of import substitution and export promotion strategies and in finding ways to improve flows of trade-financing to exporting firms.

Suggested Citation

  • Ioanna C. Bardakas, 2016. "Structural and cyclical factors of Greece’s current account balances: a note," Working Papers 206, Bank of Greece.
    • Handle: RePEc:bog:wpaper:206
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    Cited by:

    1. Aaron G Grech & Noel Rapa, "undated". "Trends in Malta’s current account and their underlying causes," CBM Policy Papers PP/03/2016, Central Bank of Malta.

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    More about this item

    Keywords

    Cyclical factors; structural factors; current account performance; filtering methods;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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