Current account imbalances, trade and finance

Anna Lo Prete

Applied Economics Letters, 2012, vol. 19, issue 4, 399-402

Abstract: This article analyses how trade-related policy choices and financial development affect current account imbalances in OECD countries. Once the policy-related component of trade openness is estimated using exogenous-to-policy indicators of globalization pressures, legal origins and natural openness, financial development plays a significant role and is negatively associated with the current account.

Date: 2012
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DOI: 10.1080/13504851.2011.581198

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