The corporate saving glut and the current account in Germany

Thorsten Klug, Eric Mayer and Tobias Schuler

No 100, W.E.P. - Würzburg Economic Papers from University of Würzburg, Department of Economics

Abstract: We investigate for the case of Germany the positive correlation between the corporate saving glut in the non-financial corporate sector and the current account surplus from a capital account perspective. By employing sign restrictions our findings suggest that mostly labor market, world demand and financial friction shocks account for the joint dynamics of excess corporate saving and the current account surplus. Household saving shocks, in contrast, cannot explain the correlation. We conclude that the corporate saving glut, explained through these factors, is the main driver of the current account surplus.

Keywords: current account; corporate saving; macro shocks (search for similar items in EconPapers)
JEL-codes: E32 F32 F45 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-acc, nep-bec, nep-eec, nep-mac and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://www.econstor.eu/bitstream/10419/196262/1/166452200X.pdf (application/pdf)

Related works:
Journal Article: The corporate saving glut and the current account in Germany (2022)
Working Paper: The corporate saving glut and the current account in Germany (2021)
Working Paper: The Corporate Saving Glut and the Current Account in Germany (2019)
Working Paper: The Corporate Saving Glut and the Current Account in Germany (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:wuewep:100

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