Original scientific paper
https://doi.org/10.1515/zireb-2017-0016
Current Account Balance and Export Performances: Evidence Based on New EU Countries
Željko Bogdan
; Faculty of Economics and Business Zagreb, University of Zagreb, Zagreb, Croatia
Boris Cota
; Faculty of Economics and Business Zagreb, University of Zagreb, Zagreb, Croatia
Nataša E rjavec
; Faculty of Economics and Business Zagreb, University of Zagreb, Zagreb, Croatia
Abstract
In this paper, we investigate whether the differences in the current account balance and export performances for a new EU countries are a result of exchange rate policies. The analysis shows that countries with a flexible exchange rate have better export performances and the current account balance in the pre-crisis period. The obtained results show that movements in the current account balance are mainly driven by domestic variables. In the countries with a flexible exchange rate, real and nominal depreciation affects export positively although the magnitude of these effects is tiny and limited to the crisis period. These results point to a higher significance of non-price competitiveness on export which should be a future research topic.
Keywords
current account balance; export; dynamic panel model; effective exchange rate; economic growth
Hrčak ID:
189587
URI
Publication date:
20.11.2017.
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