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Trade Deficits in Poland and Estonia: Capital Imports versus Import Penetration and the Sustainability of Current Account Deficits

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Abstract

This paper attempts to analyse the structure and development of marchandise imports into Poland and Estonia, and assess their influence on the respective conditions of catch-up development for the two economies: whilst capital imports constitute an important condition for overcoming the technological backwardness in transition economies, current account deficits effect negatively in the stabilisation of the monetary constitution.

Suggested Citation

  • Stephan, J., 1998. "Trade Deficits in Poland and Estonia: Capital Imports versus Import Penetration and the Sustainability of Current Account Deficits," Papers 82, American Cairo - Economics and Political Sciences.
  • Handle: RePEc:fth:cairam:82
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    Keywords

    INTERNATIONAL TRADE ; CAPITAL MARKET;

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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