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External imbalances and growth

Author

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  • Mariam Camarero

    (INTECO & Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Jesús Peiró-Palomino

    (INTECO & Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Cecilio Tamarit

    (INTECO & Department of Applied Economics II, University of 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 preponderant positive relationship between the external position and growth, although the impact differs between countries and temporal periods.

Suggested Citation

  • Mariam Camarero & Jesús Peiró-Palomino & Cecilio Tamarit, 2017. "External imbalances and growth," Working Papers 2017/02, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2017/02
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    Cited by:

    1. Mariam Camarero & María Dolores Gadea-Rivas & Ana Gómez-Loscos & Cecilio Tamarit, 2019. "External imbalances and recoveries," Working Papers 1912, Department of Applied Economics II, Universidad de Valencia.
    2. Oscar Bajo-Rubio & Carmen D Roldᮠ & Esteve, 2014. "Sustainability of external imbalances in the OECD countries," Applied Economics, Taylor & Francis Journals, vol. 46(4), pages 441-449, February.

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    More about this item

    Keywords

    Economic growth; net external position; nonparametric regression;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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