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Current account and international networks
Author(s) -
Grechyna Daryna
Publication year - 2020
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12493
Subject(s) - current account , position (finance) , centrality , economics , financial integration , international economics , current (fluid) , developing country , balance (ability) , balance sheet , finance , financial market , exchange rate , economic growth , engineering , medicine , mathematics , combinatorics , electrical engineering , physical medicine and rehabilitation
This paper explores the impact of international trade and financial networks on the current account balances. The network centrality measures are computed based on the structure and volume of trade and financial flows among the countries. A more central position in the international trade network improves the current account balance in developed countries but has no impact on the current account in developing countries. A more central position in the international financial network improves the current account balance in developed and developing countries. Besides, the impact of the international financial network on the current account has become stronger over time.