<abstract xmlns="http://www.w3.org/1999/xhtml"><p> In this paper, we investigate whether the differences in the current account balance and export performances for a new EU countries are a result of exchange rate policies. The analysis shows that countries with a flexible exchange rate have better export performances and the current account balance in the pre-crisis period. The obtained results show that movements in the current account balance are mainly driven by domestic variables. In the countries with a flexible exchange rate, real and nominal depreciation affects export positively although the magnitude of these effects is tiny and limited to the crisis period. These results point to a higher significance of non-price competitiveness on export which should be a future research topic.</p></abstract>

In this paper, we investigate whether the differences in the current account balance and export performances for a new EU countries are a result of exchange rate policies. The analysis shows that countries with a flexible exchange rate have better export performances and the current account balance in the pre-crisis period. The obtained results show that movements in the current account balance are mainly driven by domestic variables. In the countries with a flexible exchange rate, real and nominal depreciation affects export positively although the magnitude of these effects is tiny and limited to the crisis period. These results point to a higher significance of non-price competitiveness on export which should be a future research topic.

Current Account Balance and Export Performances: Evidence Based on New EU Countries

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

In this paper, we investigate whether the differences in the current account balance and export performances for a new EU countries are a result of exchange...

Current Account Balance and Export Performances: Evidence Based on New EU Countries

Published Online: Nov 30, 2017

Page range: 33 - 48

DOI: https://doi.org/10.1515/zireb-2017-0016

Keywords
current account balance, export, dynamic panel model, effective exchange rate, economic growth

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Current Account Balance and Export Performances: Evidence Based on New EU Countries

Published Online: Nov 30, 2017

Page range: 33 - 48

DOI: https://doi.org/10.1515/zireb-2017-0016

Keywordscurrent account balance, export, dynamic panel model, effective exchange rate, economic growth

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
current account balance, export, dynamic panel model, effective exchange rate, economic growth