Current Account Imbalances

Kerdrain, Clovis; Koske, Isabell; Wanner, Isabelle

doi:10.1787/eco_studies-2011-5kg5825lkmvl

Cited by 10 publications

(1 citation statement)

References 74 publications

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“…Structural reforms support economic activity because they tend to raise the profitability of investment and because lower prices increase disposable incomes and competitiveness (Vogel, 2014). Expectations about a future increase in wealth due to today's reforms can also lead to an expansion of economic activity (demand effect via improved confidence) in the short‐run (Fernandez‐Villaverde and Rubio‐Ramirez, 2011; Kerdrain et al., 2010). Supply side gains from reforms largely accrue over the medium and long‐term as they involve adjustment costs arising from costly reallocation of labor and capital and firm restructuring (Boius et al., 2012; Dabla‐Norris et al., 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Total factor productivity and structural reforms: Evidence from advanced economies sector‐level data

Jalles

2023

The Manchester School

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This paper computes a new measure of capacity utilization‐adjusted Total Factor Productivity (TFP) using sector‐level data from a sample of 18 Advanced Economies and 24 industries between 1970 and 2014. We then empirically examine the impact of structural reforms (labor and product market) on TFP by means of the local projection method. Structural reforms follow a narrative‐base construction which have several advantages in our context. Results show that structural reforms positively impact TFP, particularly the liberalization of employment protection legislation for regular workers. The effect of reforms affects both changes in resource misallocation across sectors (the between effect) and within sectors (the within effect). The TFP‐effect of both types of reforms varies depending on the phase of the business cycle prevailing at the time the reform is implemented. Finally, our findings are robust to a wide range sensitivity checks.

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Section: Literature Reviewmentioning

confidence: 99%

Total factor productivity and structural reforms: Evidence from advanced economies sector‐level data

Jalles

2023

The Manchester School

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Banken- und Staatsschuldenkrise: Ursachen, Folgen, Lösungsansätze

Tichy

2013

Neue Europäische Finanzarchitektur

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Current account balances and output volatility

Elgin¹,

Kuzubaş²

2013

Economic Modelling

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Using annual data from 185 countries over the period from 1950 to 2009, we examine the empirical relationship between current account balance and output volatility in a panel data framework. In a static panel data framework we find that a larger current account deficit is associated with a higher volatility, particularly so in emerging market economies. We also find that this association strongly interacts with GDP per-capita. Moreover, taking the possible endogeneity and feedback effects into account, we also use a Panel-VAR framework and in this case find that output volatility gives a significant positive response to a shock in the current account balance and a negative response to the shocks on GDP per-capita capita.

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Current Account Imbalances

Cited by 10 publications

References 74 publications

Total factor productivity and structural reforms: Evidence from advanced economies sector‐level data

Total factor productivity and structural reforms: Evidence from advanced economies sector‐level data

Banken- und Staatsschuldenkrise: Ursachen, Folgen, Lösungsansätze

Current account balances and output volatility

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