Current account and structural change in European transition economies

Simeon Coleman () and Juan Cuestas

No 2019/08, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: How have the transition economies’ current accounts evolved? How similar are the factors that have influenced their evolution in each of these countries? In this paper, we examine the evolution of the current account in Central and Eastern European countries and the relationship with the main fundamentals. We employ dynamic ordinary least squares (DOLS) and Threshold Estimation methods to examine the relationship with its main fundamentals (i.e., the Real Exchange Rate, Terms of Trade, Investment, Government Consumption and Income). Our results suggest that the long-run determinants of the current account have indeed changed over time. In addition, the threshold cointegrated estimates show that the parameters are dependent on thresholds for certain variables.

Keywords: Current account; Central and Eastern Europe; structural breaks; European integration. (search for similar items in EconPapers)
JEL-codes: F15 F32 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2019
New Economics Papers: this item is included in nep-eec, nep-ore and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2019/08

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