Investigating Global Imbalances: Empirical evidence from a GVAR approach
Timo Bettendorf ()
Economic Modelling, 2017, vol. 64, issue C, 201-210
This paper investigates the development of external imbalances from an international perspective by estimating a Global VAR model. Specifically, we simulate the effects of shocks to relevant macroeconomic variables in the United States and the oil price on international trade balances and quantify the relative importance of these shocks using variance decompositions. Overall, we find evidence for the joint dynamics of our variables as drivers of the imbalances and provide further evidence for different hypotheses of Global Imbalances. The results suggest that shocks to US’ real GDP, real stock prices and the oil price are of particular importance for international trade balances and may thus be interpreted as support for parts of the global saving glut hypothesis as well as the international wealth channel.
Keywords: Global Imbalances; Global var; International trade; Open economy macroeconomics (search for similar items in EconPapers)
JEL-codes: F10 F32 F41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Investigating Global Imbalances: Empirical Evidence from a GVAR Approach (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:64:y:2017:i:c:p:201-210
Access Statistics for this article
Economic Modelling is currently edited by S. Hall and P. Pauly
More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().