The Persistence of Current Account Balances and its Determinants: The Implications for Global Rebalancing

43 Pages Posted: 18 Dec 2012

See all articles by Erica Clower

Erica Clower

Asian Development Bank Institute

Hiro Ito

Portland State University - Department of Economics

Date Written: December 17, 2012

Abstract

This paper examines the statistical nature of the persistency of current account balances and its determinants. With the assumption that stationary current account series ensures the long-run budget constraint while countries may experience 'local non-stationarity' in current account balances, the authors examine the dynamics of current account balances across a panel of 70 countries.

Keywords: current account, financial liberalization, global imbalances, capital controls

JEL Classification: F32, F41

Suggested Citation

Clower, Erica and Ito, Hiro, The Persistence of Current Account Balances and its Determinants: The Implications for Global Rebalancing (December 17, 2012). ADBI Working Paper No. 400. Available at SSRN: https://ssrn.com/abstract=2190266 or http://dx.doi.org/10.2139/ssrn.2190266

Erica Clower (Contact Author)

Asian Development Bank Institute ( email )

Kasumigaseki Building 8F 3-2-5
Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008
Japan

Hiro Ito

Portland State University - Department of Economics ( email )

Portland, OR 97207-0751
United States
503-725-3930 (Phone)
503-725-3945 (Fax)

HOME PAGE: www.econ.pdx.edu

Register to save articles to
your library

Register

Paper statistics

Downloads
81
Abstract Views
443
rank
309,469
PlumX Metrics