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dc.contributor.authorNieminen, Mika
dc.date.accessioned2015-08-27T04:30:48Z
dc.date.available2017-10-21T21:45:05Z
dc.date.issued2015
dc.identifier.citationNieminen, M. (2015). Trade imbalances within the euro area and with respect to the rest of the world. <em>Economic Modelling</em>, 48, 306-314. <a href="http://dx.doi.org/10.1016/j.econmod.2014.10.012">doi:10.1016/j.econmod.2014.10.012</a>
dc.identifier.otherTUTKAID_66345
dc.identifier.urihttps://jyx.jyu.fi/handle/123456789/46711
dc.description.abstractMany 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.
dc.language.isoeng
dc.publisherElsevier BV
dc.relation.ispartofseriesEconomic Modelling
dc.subject.otherCulture
dc.subject.otherCurrent account
dc.subject.otherEuropean monetary union
dc.subject.otherInstitutions
dc.subject.otherTrade balance vis-à-vis the euro area
dc.subject.otherTrade balance vis-à-vis the rest of the world
dc.titleTrade imbalances within the euro area and with respect to the rest of the world
dc.typearticle
dc.identifier.urnURN:NBN:fi:jyu-201508262757
dc.contributor.laitosKauppakorkeakoulufi
dc.contributor.laitosSchool of Business and Economicsen
dc.contributor.oppiaineBasic or discovery scholarship
dc.contributor.oppiaineTaloustiede
dc.type.urihttp://purl.org/eprint/type/JournalArticle
dc.date.updated2015-08-26T12:15:02Z
dc.type.coarjournal article
dc.description.reviewstatuspeerReviewed
dc.format.pagerange306-314
dc.relation.issn0264-9993
dc.relation.numberinseries0
dc.relation.volume48
dc.type.versionacceptedVersion
dc.rights.copyright© 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.
dc.rights.accesslevelopenAccessfi
dc.relation.doi10.1016/j.econmod.2014.10.012


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