Demographic Changes, Saving, and Current Account in East Asia

This paper analyzes the empirical relationships among demographic changes, saving, and current account balances in East Asia. The panel Vector-Auto Regressive (VAR) model shows that an increase in the dependency rate, especially the elderly dependency rate, significantly lowers saving rates and subsequently worsens current account balances. The result implies that the future aging of the population in East Asia would have a significant impact on global capital flows and current account imbalances.

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Unemployment and Current Account Imbalances in Nigeria

Global Business & Economics Anthology ◽

10.47341/gbea.20127 ◽

2020 ◽

Vol 2 (12, 20) ◽

Author(s):

Ewere F.O. Okungbowa ◽

◽

Adesuwa O. Erediauwa ◽

Keyword(s):

Current Account ◽

Unemployment Rate ◽

Current Account Deficit ◽

Output Growth ◽

High Rate ◽

Current Account Surplus ◽

Long Run ◽

Current Account Imbalances ◽

Current Account Balances ◽

Account Imbalances

This study explores the link that exists between unemployment and current account imbalances in Nigeria from 1980 to 2014. It adopted the ARDL bounds test approach. The result gave evidence for a long-run relationship between the variables and also revealed a significant and inverse relationship between current account surplus and unemployment. Showing that a 1% increase in current account balances in favour of export will lead to a drop in the unemployment rate by 0.117893%. This, therefore, implies that current account deficit will cause a fall in employment and in turn a rise in the unemployment rate. Consequently, current account deficit leads to wage differentials in favour of the exporting countries as against importing countries, like Nigeria, and as such triggers a high rate of unemployment. We strongly recommend diversification of the country’s export-base which may increase employment opportunities and in turn reduce the unemployment rate. Keywords: Unemployment, Employment, Current Account Balances, Balance of payment, Output growth

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Global Capital Market Developments, Current Account Imbalances and the Evidence for Age-related International Capital Flows

The Economic and Financial Market Consequences of Global Ageing - European and Transatlantic Studies ◽

10.1007/978-3-540-24821-7_3 ◽

2004 ◽

pp. 55-88

Author(s):

Kieran Mc Morrow ◽

Werner Roeger

Keyword(s):

Current Account ◽

Capital Market ◽

Capital Flows ◽

International Capital Flows ◽

International Capital ◽

Global Capital ◽

Age Related ◽

Current Account Imbalances ◽

Account Imbalances

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Global Imbalances: The Role of Institutions, Financial Development and FDI in the Context of Financial Crises

Sustainability ◽

10.3390/su13010356 ◽

2021 ◽

Vol 13 (1) ◽

pp. 356

Author(s):

Carlos A. Silva ◽

Xavier Ordeñana ◽

Paul Vera-Gilces ◽

Alfredo Jiménez

Keyword(s):

Financial Crisis ◽

Financial Development ◽

Current Account ◽

Global Financial Crisis ◽

Quality Of Institutions ◽

Current Account Imbalances ◽

The Global Financial Crisis ◽

Current Account Balances

This paper examines the role of the quality of institutions, financial development and FDI on current account imbalances, which narrowed during the Global Financial Crisis. In doing so, we utilize (i) a sample of 49 advanced and emerging economies during 1984–2014; (ii) a novel three-clustered indices of institutional quality and (iii) two measures of financial development, the share of FDI and a measure of financial crisis in addition to standard determinants of the current account. We find that the better the quality of institutions and the greater the financial development, the larger are current account deficits; meanwhile, FDI contributes to boost current account balances. Moreover, financial crisis episodes tend to improve current account balances, particularly for countries that are highly open to trade and to receive FDI, as in the case of advanced economies and East Asian countries.

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The Measurement of External Accounts

IMF Working Papers ◽

10.5089/9781498317450.001 ◽

2019 ◽

Vol 19 (132) ◽

pp. 1

Author(s):

Gustavo Adler ◽

Daniel Garcia-Macia ◽

Signe Krogstrup

Keyword(s):

Data Collection ◽

Conceptual Framework ◽

Current Account ◽

Foreign Investment ◽

Future Research ◽

Profit Shifting ◽

Current Account Imbalances ◽

Definition Of ◽

Retained Earnings ◽

Current Account Balances

Growing international integration in trade and finance can challenge the measurement of external accounts. This paper presents a unified conceptual framework for identifying sources of mismeasurement of foreign investment income in current account balances. The framework allows to derive a precise definition of measurement distortions and an empirical strategy for estimating their importance. As an application, we empirically estimate two specific distortions related to inflation and retained earnings on portfolio equity for a broad set of countries. We find these may explain a non-trivial share of current account imbalances and that they are particularly relevant in countries with large external investment positions. We also discuss how merchanting and profit-shifting activities could lead to measurement distortions. We suggest areas for future research and underline the need to strengthen data collection efforts.

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