Analysis of the Romanian Current Account Sustainability (original) (raw)

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1 Sustainability of Current Account BALANCE1

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The trade deficit and consequently, the current account deficit, are among the essential challenges the Albanian transition is facing. The level of 24,6 % of the relative indicator of trade deficit in 2002 (in percentage of GDP), corresponds to the level of 9 % of the relative indicator of current account deficit, approaching to the record level marked in 1997 (11.1%), surpassing the level of 2001 by 3,7 percentage points and being about two times higher than the level of 5%, which, in economic literature, is regarded as a “warning ” level. The high levels of current account deficit raise the need to analyze the deficit sustainability, an analysis that constitutes even the aim of this paper. Comparing the theoretical criteria and particularly the practical criteria of current account deficit sustainability with current account balance position in Albania, the conclusion is drawn that in Albania’s case the current account deficit is chronic, and at very high levels. Nevertheless, giv...

SUSTAINABILITY OF CURRENT ACCOUNT BALANCE1

The trade deficit and consequently, the current account deficit, are among the essential challenges the Albanian transition is facing. The level of 24,6% of the relative indicator of trade deficit in 2002 (in percentage of GDP), corresponds to the level of 9% of the relative indicator of current account deficit, approaching to the record level marked in 1997 (11.1%), surpassing the level of 2001 by 3,7 percentage points and being about two times higher than the level of 5%, which, in economic literature, is regarded as a "warning" level. The high levels of current account deficit raise the need to analyze the deficit sustainability, an analysis that constitutes even the aim of this paper.

Sustainability of Turkish Current Account Deficit in the Post-Crisis Period

bs.teilar.gr

Persistent rise in current account deficit (CAD) and the way that the country finances its CAD constitutes one of the major sources of external fragility in Turkey. Therefore, sustainability of CAD has become one of the critical issues for at least two decades. In this study, intertemporal budget constraint model was used to examine the sustainability of Turkish CAD after the financial crisis in 2001. Unit root and cointegration techniques were employed in the analysis. The main result of the study indicates that Turkish CAD is sustainable in a weak sense for the postcrisis period.