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Current Account Determinats in Central Eastern European Countries

Listed author(s):
  • Jonida Bollano

    (Bank of Albania)

  • Delina Ibrahimaj

    (Bank of Albania)

Registered author(s):

    This paper empirically investigates the determinants of current accounts for a sample of 11 Central and East European Countries outside the Euro area. To this end we rely on the estimation of a panel VAR model with fixed effects over the period Q1 2005 to Q42014. Consistent with existing literature, we show that domestic GDP, the fiscal deficit, and the real effective exchange rate are key determinants of the current accounts of these countries. The dynamic relationships revealed in the paper complement the empirical literature on several fronts by providing new evidence from these emerging market economies.

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    File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/IHEIDWP22-2015.pdf
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    Paper provided by Economics Section, The Graduate Institute of International Studies in its series IHEID Working Papers with number 22-2015.

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    Length: 28 pages
    Date of creation: 01 Oct 2015
    Handle: RePEc:gii:giihei:iheidwp22-2015
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