New evidence on the determinants of current accounts in the EU

Agnieszka Gehringer ()

Empirica, 2015, vol. 42, issue 4, 769-793

Abstract: Growing external imbalances in Europe have been recognized as an important aggravating element in searching for solutions out of the current crisis. This paper takes a closer look at the determinants of current accounts in the European economies. The standard set of the determinants discussed in the past literature is extended by factors that seem to have played an important role in Europe over the last decades. Such factors relate particularly to the dynamics of consumption and connected to this credit concession to the private sector, as well as to the increasingly preponderant presence of low-productive and non-tradable construction activities in the economic structure. Additionally, the growth of per capita output played a significant role in explaining current account positions. This evidence speaks in favour of the catching up still going on within Europe. Copyright Springer Science+Business Media New York 2015

Keywords: Current account imbalances; European integration; Consumption dynamics; Private credit; Non-tradables; Construction; F32; F34; F36 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10663-014-9276-9 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:empiri:v:42:y:2015:i:4:p:769-793

Ordering information: This journal article can be ordered from
http://www.springer. ... ration/journal/10663

DOI: 10.1007/s10663-014-9276-9

Access Statistics for this article

Empirica is currently edited by Fritz Breuss and Fritz Breuss

More articles in Empirica from Springer, Austrian Institute for Economic Research, Austrian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().