Revisiting the Glick–Rogoff Current Account Model: An Application to the Current Accounts of BRICS Countries
Yushi Yoshida () and
Additional contact information
Weiyang Zhai: Shiga University
A chapter in Recent Econometric Techniques for Macroeconomic and Financial Data, 2021, pp 265-291 from Springer
Abstract Understanding what drives the changes in current accounts is one of the most important macroeconomic issues for developing countries. Excessive surpluses in current accounts can trigger trade wars, and excessive deficits in current accounts can, on the other hand, induce currency crises. The Glick–Rogoff (1995, Journal of Monetary Economics) model, which emphasizes productivity shocks at home and in the world, fit well with developed economies in the 1970s and 1980s. However, the Glick–Rogoff model fits poorly when it is applied to fast-growing BRICS countries for the period including the global financial crisis. We conclude that different mechanisms of current accounts work for developed and developing countries.
Keywords: BRICS countries; Current accounts; Glick–Rogoff model; Global financial crisis; Productivity shock (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Working Paper: Revisiting the Glick-Rogoff Current Account Model: An Application to the Current Accounts of BRICS Countries (2020)
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:spr:dymchp:978-3-030-54252-8_10
Ordering information: This item can be ordered from
Access Statistics for this chapter
More chapters in Dynamic Modeling and Econometrics in Economics and Finance from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().