IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Structural Policy Reforms and External Imbalances

Listed author(s):
  • Mike Kennedy
  • Torsten Sløk

It has been argued that one solution to global current account imbalances is for countries with current account surpluses to undertake structural reforms. This would raise their potential growth, which is assumed to put downward pressure on the current account position. This paper takes a closer look at how such structural reforms in labour markets, product markets, and financial markets could be expected to affect current accounts. It also tests empirically, using pooled time-series techniques (that control for the influence of relative cyclical positions, government fiscal balances and the real exchange rate), whether or not reforms in these areas would have any significant relationship with current accounts. The overall finding is that indicators of structural reforms do have a significant relationship with the current account but the contribution of these variables to explain current account positions is quite limited ... Politique de réformes structurelles et balances extérieures Il a été démontré qu’une solution au déséquilibre de la balance des opérations courantes dans les pays ayant un excédant serait d’entreprendre des réformes structurelles. Cela devrait augmenter leur potentiel de croissance, ce qui est supposé soulager la pression sur la situation de la balance des opérations courantes. Cet article examine de près comment de telles réformes structurelles dans les marchés financiers, du travail et de la production sont susceptibles d’influer les comptes courants. Il vérifie aussi empiriquement, au moyen d’un ensemble de séries temporelles techniques (lesquelles contrôlent l’influence des situations conjoncturelles relatives, l’équilibre budgétaire et le taux de changes réèl) si des réformes dans ces secteurs ont une relation significative avec les comptes courants. Il en ressort que ces indicateurs de réformes structurelles ont une relation significative avec les comptes courants, mais que la contribution de ces variables à l'explication de la ...

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 415.

in new window

Date of creation: 24 Jan 2005
Handle: RePEc:oec:ecoaaa:415-en
Contact details of provider: Postal:
2 rue Andre Pascal, 75775 Paris Cedex 16

Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:415-en. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.