NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Medium-Term Determinants of Current Accounts in Industrial and Developing Countries: An Empirical Exploration

Menzie D. Chinn, Eswar S. Prasad

NBER Working Paper No. 7581
Issued in March 2000
NBER Program(s):   IFM

This paper provides an empirical investigation of the medium-term determinants of current accounts for a large sample of industrial and developing countries. The analysis is based on a structural approach that highlights the roles of the fundamental macroeconomic determinants of saving and investment. Cross-section and panel regression techniques are used to characterize the properties of current account variation across countries and over time. We find that current account balances are positively correlated with government budget balances and initial stocks of net foreign assets. Among developing countries, measures of financial deepening are positively associated with current account balances while indicators of openness to international trade are negatively correlated with current account balances.

download in pdf format
   (189 K)

email paper

This paper is available as PDF (189 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7581

Published: Chinn, Menzie D. and Eswar S. Prasad. "Medium-term Determinants Of Current Accounts In Industrial And Developing Countries: An Empirical Exploration," Journal of International Economics, 2003, v59(1,Jan), 47-76.

Users who downloaded this paper also downloaded these:
Chinn and Ito w11761 Current Account Balances, Financial Development and Institutions: Assaying the World "Savings Glut"
Obstfeld and Rogoff w4893 The Intertemporal Approach to the Current Account
Feldstein and Horioka w0310 Domestic Savings and International Capital Flows
Milesi Ferretti and Razin Current Account Reversals and Currency Crises: Empirical Regularities
Maria Milesi-Ferrett and Razin w6620 Current Account Reversals and Currency Crises: Empirical Regularities
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us