Open AccessEvaluation of the determinants of growing current account deficit
Author(s) -
Lina Garšvienė,
Mindaugas Butkus
Publication year - 2014
Publication title -
socialiniai tyrimai
Language(s) - English
Resource type - Journals
eISSN - 2351-6712
pISSN - 1392-3110
DOI - 10.15388/st.2014.23081
Subject(s) - current account , openness to experience , current (fluid) , economics , capital account , macroeconomics , international economics , monetary economics , psychology , exchange rate , social psychology , electrical engineering , engineering
The objective of the paper is to identify and generalize the factors determining the growth of current account deficit and select the periods of growing current account deficit and evaluate their determinants. The results of the analysis confirmed the growing current account deficit reaching from 3% to 30% of GDP in different developing and developed countries. The results showed that growing current account deficit is strongly determined by domestic demand and market prices; however, other factors such as national openness, international movement of capital, and the condition of world market have no significant impact.