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cc-by (c) Springer Verlag, 2025
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/220683

Current account determinants in a globalized world

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This paper investigates the determinants of external imbalances for a group of 26 developed and emerging countries over the period 1972-2021. In addition to traditional factors, the model incorporates the impact of external imbalances in third countries. The empirical evidence highlights the importance of accounting for parameter instabilities in modeling external imbalances, with countries exhibiting heterogeneous behavior in terms of the estimated break dates. The results underscore the critical role of external drivers, such as oil shocks, and the growing influence of third-country imbalances in an increasingly globalized world. Additionally, demographic trends emerge as a significant long-run internal driver. Finally, the paper calculates regime-specific short-run multipliers.

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CAMARERO, Mariam, CARRIÓN I SILVESTRE, Josep Lluís and TAMARIT, Cecilio R. Current account determinants in a globalized world. Empirical Economics. 2025. Vol. 68, num. 1497-1527. ISSN 0377-7332. [consulted: 13 of June of 2026]. Available at: https://hdl.handle.net/2445/220683

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