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External imbalances and growth

Author

Listed:
  • Miriam Camarero

    (Jaume I University. Department of Economics, Av. de Vicent Sos Baynat s/n, E-12071 Castellón, Spain)

  • Jesús Peiró-Palomino

    (University of Valencia, Department of Applied Economics II, Av. dels Tarongers, s/n Eastern Department Building E-46022 Valencia, Spain)

  • Cecilio Tamarit

    (University of Valencia, INTECO Joint Research Unit. Department of Applied Economics II. PO Box 22.006 - E-46071 Valencia, Spain)

Abstract

The purpose of the paper is to investigate the role that unbalanced net foreign asset positions play in the growth path of the economies. In particular, the hypothesis to be tested is whether external imbalances may constrain growth in debtor countries. We analyze a large sample of countries using Lane and Milesi-Ferretti “External Wealth of Nations Dataset” and employing both parametric and nonparametric techniques. We find a positive relationship between the external position and growth, although the impact differ between countries and temporal periods.

Suggested Citation

  • Miriam Camarero & Jesús Peiró-Palomino & Cecilio Tamarit, 2018. "External imbalances and growth," Working Papers 1808, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1808
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    References listed on IDEAS

    as
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    Keywords

    Economic growth; net external position; nonparametric regression;

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