 Economic Growth, Current Account Dynamics and Growth Regimes in the Baltic StatesNo wp2023-1, Bank of Estonia Working Papers from Bank of Estonia Abstract: This paper considers the growth performance of the Baltic states from the mid-1990s to 2021. Economic growth was fast before the global financial crisis, but slowed markedly after the crisis. Panel data estimations using seemingly unrelated regressions suggest that the dynamics of the current account balance are important for short and medium-term growth in the Baltic states, but that there is a break signifying a change of growth regime around the time of the global financial crisis. Before the crisis, rapid growth was supported by domestic demand that was made possible by large current account deficits. After the crisis, economic growth was supported by external demand reflected in an improvement of the current account. The shift in the economic growth regime after the global financial crisis has brought lower but also more sustainable growth. Keywords: economic growth; economic convergence; current account balance; global financial crisis (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eea:boewps:wp2023-1 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in Bank of Estonia Working Papers from Bank of Estonia Estonia bld. 13, 15095 Tallinn, ESTONIA. Contact information at EDIRC. |
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