Monetary and absorption approach to explain the Croatian current account

Bošnjak, Mile; Novák, Ivan; Krišto, Ante

doi:10.18045/zbefri.2018.2.929

Cited by 6 publications

(5 citation statements)

References 21 publications

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“…Trade liberalization had a beneficial and large short-run impact on economic growth. Bosnjak et al (2018) examined the factors of the Croatian current account dynamics by using the monetary and Absorption approach. The paper's fundamental hypothesis was that the Croatian current account could be explained in terms of the monetary and Absorption approach to the balance of payments.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Bilateral Trade Balance Between Georgia and China

Dilanchiev

Taktakishvili

2022

ECO

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This paper aims to empirically examine the drivers of the bilateral balance of the trade model for the Georgian-Chinese economy from 2000 to 2020 and the influence of the Georgia-China free trade agreement on the Georgian-Chinese balance of trade. The Error Correction Model (ECM) of the ARDL was used to see if the balance of trade and its predictors have a long-term relationship. One of the ARDL’s defining properties is that it may be utilized in circumstances when there is minimal data, regardless of the level of variable integration. According to the findings, a perceived effective exchange rate has a statistically significant positive impact on the balance of trade in the long run and a statistically significant negative impact on the balance of trade in the short run. The output is shaped to favor the presence of the elasticity attitude’s J-Curve impact. The study also found that the comparative supply of money (MS) and GDP have only a minor impact on the trade balance in the medium and long run. The sponging and monetary methods are ineffective in characterizing the bilateral trade deficit between Georgia and China.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of Bilateral Trade Balance Between Georgia and China

Dilanchiev

Taktakishvili

2022

ECO

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“…To compensate for this drawback, the absorption approach was introduced (Alexander, 1959). Following the absorption approach, the effects of currency depreciation on trade balance depend on the consequent change in the income of the country (Bošnjak et al, 2018). The monetary approach, which was originally suggested by Polak (1957), points out that the trade balance is a monetary phenomenon and arises out of a disequilibrium between demand and supply in the money market.…”

Section: Key Determinants Of Trade Balancementioning

confidence: 99%

“…The monetary approach, which was originally suggested by Polak (1957), points out that the trade balance is a monetary phenomenon and arises out of a disequilibrium between demand and supply in the money market. In line with this approach, deficit in the trade balance results from excessive supply over demand for money (Bošnjak et al, 2018). Existing empirical studies refer to all these approaches to explain trade balance (Table 1) and finding an appropriate theoretical explanation for a specific country is treated as an empirical issue.…”

Section: Key Determinants Of Trade Balancementioning

confidence: 99%

Determinants for international competitiveness of the food industry in 43 countries world-wide: evidence from panel models

Hamulczuk

Pawlak²

2022

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Research background: Food industry is of key importance to each economy due to its role in ensuring food security, balancing the labour market, as well as contributing to the economic growth and international trade. With a limited increase in demand for food in many highly developed countries, further growth in this sector of the economy will largely depend on the ability to successfully distribute manufactured goods in international markets and cope with competitive pressure from other entities. Purpose of the article: Therefore, the study attempts to assess the determinants of international competitiveness of the food industry worldwide measured by the trade balance. Methods: The research was based on data from the United Nations Conference on Trade and Development Data Center (UNCTADStat) and the World Input-Output Database (WIOD). The time frame for the analyses was determined by the availability of internationally comparable data and thus covered the period of 2000?2014. The empirical analysis was performed with the use of panel models, while international competitiveness was measured by trade balance (net export). Findings & value added: It was proved that increasing trade openness and relative demand, as well as decreasing relative unit labour costs have a positive impact on international competitiveness of the food industry worldwide. However, the nature of the relationship between relative labour productivity and trade balance appears to be ambiguous. A stronger impact of the examined factors on net exports in the long-run rather than the short-run was also evidenced. The novelty of our analysis is that we consider trade balance determinants of the food industry worldwide using panel models, whereas most of the existing studies focus either on one or a narrow group of countries.

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“…The study finally concludes that both data revisions and model uncertainty contribute to an obstacle to the U.K.'s monetary targeting regime. Bošnjak, Novak & Krišto (2018), produced an empirical study to explore the determinants of Croatian current account dynamics with the use of a monetary and absorption approach. The study made use of the Non-linear Auto-Regression Distributed Lag (NARDL) approach, incorporating nonlinear and asymmetric relationships for the Croatian current account and other determining factors.…”

Section: Empirical Reviewmentioning

confidence: 99%

Untitled

2022

Theor. Pract. Res. Econom. Fields

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Many economists today are concerned by the proliferation of journals and the concomitant labyrinth of research to be conquered in order to reach the specific information they require. To combat this tendency, Theoretical and Practical Research in Economic Fields has been conceived and designed outside the realm of the traditional economics journal. It consists of concise communications that provide a means of rapid and efficient dissemination of new results, models, and methods in all fields of economic research.Theoretical and Practical Research in Economic Fields publishes original articles in all branches of economics -theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area.Journal promotes research that aim at the unification of the theoretical-quantitative and the empirical-quantitative approach to economic problems and that are penetrated by constructive and rigorous thinking. It explores a unique range of topics from the frontier of theoretical developments in many new and important areas, to research on current and applied economic problems, to methodologically innovative, theoretical and applied studies in economics. The interaction between empirical work and economic policy is an important feature of the journal.Theoretical and Practical Research in Economic Fields, starting with its first issue, it is indexed in EconLit, RePec, ProQuest, Cabell Directories and CEEOL databases.The primary aim of the Journal has been and remains the provision of a forum for the dissemination of a variety of international issues, empirical research and other matters of interest to researchers and practitioners in a diversity of subject areas linked to the broad theme of economic sciences.All the papers will be first considered by the Editors for general relevance, originality and significance. If accepted for review, papers will then be subject to double blind peer review.Invited manuscripts will be due till November 10 th, 2022, and shall go through the usual, albeit somewhat expedited, refereeing process.

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Monetary and absorption approach to explain the Croatian current account

Cited by 6 publications

References 21 publications

Determinants of Bilateral Trade Balance Between Georgia and China

Determinants of Bilateral Trade Balance Between Georgia and China

Determinants for international competitiveness of the food industry in 43 countries world-wide: evidence from panel models

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