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Current Accounts in the European Union and the Sectoral Influence: An Empirical Assessment

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  • Agnieszka Gehringer

    (Flossbach von Storch Research Institute, Ottoplatz 1, 50679 Cologne, Germany)

Abstract

The paper investigates factors determining the current account in the European Union. In addition to the standard determinants of the current account, explanatory variables describing sectoral composition are included. Independently of the econometric method and data frequency applied, the main findings suggest that the low-productive construction sector might have played an important role in aggravating current account positions in the European economies. On the contrary, business services positively influenced current account balances.

Suggested Citation

  • Agnieszka Gehringer, 2016. "Current Accounts in the European Union and the Sectoral Influence: An Empirical Assessment," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(2), pages 152-173, June.
    • Handle: RePEc:pal:compes:v:58:y:2016:i:2:p:152-173
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