Abstract
European Union economies are facing important internal and external imbalances, as highlighted by the recent crises. Although progress has been made in order to reduce the gaps, the situation is still worrying. In this paper we aim at identifying the main determinants of current account balance in the European Union, as competitiveness is one of the major issues that need to be resolved regarding the European economies, aside with fiscal sustainability. We analyze the dynamics of current account balance in the European Union and test the effects of some economic imbalances, as highlighted by the current crises, considering data for the European Union member states covering years 2000–2013. Based on the results of panel data analysis we make considerations on future dynamics of the European Union economies.
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Acknowledgement
This paper has been financially supported within the project entitled “Horizon 2020—Doctoral and Postdoctoral Studies: Promoting the National Interest through Excellence, Competitiveness and Responsibility in the Field of Romanian Fundamental and Applied Economic Research”, contract number POSDRU/159/1.5/S/140106. This project is co-financed by European Social Fund through Sectorial Operational Programme for Human Resources Development 2007–2013. Investing in people! The authors also gratefully acknowledge partial support of this research by Webster University Thailand.
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Lazar, MI., Paun, RM. (2016). Current Account Dynamics and Determinants in the European Union. In: Bilgin, M., Danis, H. (eds) Entrepreneurship, Business and Economics - Vol. 2. Eurasian Studies in Business and Economics, vol 3/2. Springer, Cham. https://doi.org/10.1007/978-3-319-27573-4_20
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DOI: https://doi.org/10.1007/978-3-319-27573-4_20
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