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The current account sustainability in Central and Eastern Europe: Has it changed?

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  • Juan Carlos Cuestas

    (Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

In this paper we aim to analyse the evolution of the current account as percentage of the GDP for a group of Central and Eastern European Countries. Instead of only analysing the variable for unit roots, we go a step further and test for different speeds of mean reversion dependent on break dates endogenously determined. We apply the Bai and Perron method to find that although most countries have managed to balance their current account but some of them should keep an eye on a low speed of mean reversion and deviating time trend from balance.

Suggested Citation

  • Juan Carlos Cuestas, 2019. "The current account sustainability in Central and Eastern Europe: Has it changed?," Working Papers 2019/10, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2019/10
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    debt; Central and Eastern Europe; structural breaks; European integration;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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