Trade imbalances within the euro area and with respect to the rest of the world
Nieminen, M. (2015). Trade imbalances within the euro area and with respect to the rest of the world. Economic Modelling, 48, 306-314. https://doi.org/10.1016/j.econmod.2014.10.012
Published in
Economic ModellingAuthors
Date
2015Copyright
© 2014 Elsevier B.V. This is a final draft version of an article whose final and definitive form has been published by Elsevier. Published in this repository with the kind permission of the publisher.
Many studies have explored the determinants of current account balances in Europe.
However, only in a few studies trade balance has been decomposed into intra balance,
trade balance vis-à-vis the euro area, and extra balance, trade balance vis-à-vis
the rest of the world. This decomposition is necessary for us to understand why
some core euro area countries are acting as financial intermediaries for the periphery
countries. Furthermore, the determinants of intra and extra balances might be different
because nominal exchange rate cannot adjust between the EMU countries while
their financial markets are highly integrated. Thus, we apply this decomposition and
supplement the previous studies by including a larger set of theoretically plausible
explanatory variables, which is derived from the current account literature. Our contribution
is twofold: We observe that, contrary to Schmitz and von Hagen (2011), the
introduction of common currency has not increased the elasticity of net capital flows
to per capita incomes within the euro area for the member countries. On the other
hand, there is a great heterogeneity among the usual determinants of trade balances
whether those contribute to intra balances or extra balances. These results increase
our understanding of the imbalances in the euro area.
...


Publisher
Elsevier BVISSN Search the Publication Forum
0264-9993Keywords
Publication in research information system
https://converis.jyu.fi/converis/portal/detail/Publication/24744597
Metadata
Show full item recordCollections
- Kauppakorkeakoulu [1087]
Related items
Showing items with similar title or keywords.
-
Impact of institutional work on institutional change, boundaries and practices within the creative economy : case: Jyväskylä, Finland
Kovalenko, Oleksiy (2022)This study aims to explore psychological factors that determine behavioural adap-tive mechanisms (equivocal instances of agency) of the key creative industry actors (cul-tural managers) in creation, maintenance and disruption ... -
Economic policy uncertainty and bank risks in the European Union
Harrikari, Anton (2020)Käyttämällä 45 eurooppalaisen pankin tietoja vuosilta 2000-2015, tämä pro gradu -tutkielma käsittelee talouspoliittisen epävarmuuden (TPE) vaikutuksia pankkien luottoriskeihin luottoluokituksilla mitattuna. Paneelidatasta ... -
Determinants of current account balances
Nieminen, Mika (2011) -
Culture and current account balances
Nieminen, Mika; Heimonen, Kari; Mangeloja, Esa (Routledge, 2015)This article contributes to the literature of current account balances by introducing cultural variables that until now have been omitted. The World Values Survey indicates that the Roman Catholics do not consider thrift ... -
Essays on current account imbalances
Nieminen, Mika (University of Jyväskylä, 2017)Global current account imbalances and intra-euro area imbalances have been at the forefront of academic and policy debates for the last ten years. This thesis examines the determinants of current account balances and ...