Skip to main content
SpringerLink
Log in

Is the Current Account Deficit a Problem for Romania?

  • South East European Issues
  • Published:
Transition Studies Review

Abstract

The current account deficit of Romania, both significant in size and persistent, has been a worrying issue affecting the country’s economic and financial macro-stability also in the medium and long term. This paper sets out to review the causes of that phenomenon and its coverage resources during the last 2 years, 2006 and 2007, while the final part deals with the potential developments of said parameters during the post European Union accession period, as well as of their respective influential factors.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. The NBR has not yet edited the detailed structure of recordings with the balance of payments for 2007.

  2. Estimates performed by The National Forecast Commission, 23 November, 2006.

  3. The most appropriate estimate seems to be that, upon its accession to the EU, Romania might also exhibit tendencies similar to those of the countries having accessed in 2004: in some of those countries the currencies have turned out to be highly volatile, as periods of self-appreciation were alternating with periods of depreciation.

  4. Nevertheless, in the case of Romania, foreign operators are allowed to bring in working men or women, as it happened in the county of Bacău.

  5. Romania holds at present the last but one position in the EU27 group, in terms of work productivity.

References

  • Anghel LC (2007) Currency risk in European Romania. In: The financial market (Piata financiara), vol 3. pp 36–37

  • Bal A (2003) The implementation strategy of Romania’s accession to the EU; requirements of the Unique Market and possible related answers during the pre-accession period (Chapter 1). In: The liberalization of external trade exchanges. Benefits and risks for Romania. The Publishing House on Economics, Bucharest, pp 17–63

  • Cojanu V (coordinator) (2006) Strategic elements for Romania’s preparation with the post-accession period, impact studies III. The European Institute in Romania, Bucharest

  • Copaciu M, Răcaru I (2006) Romania’s external balance, qualitative and quantitative approaches. Working paper no.18 of NBR. http://www.bnro.ro

  • Cueras JM (1996) La vision espagnole: une realite imparfaite. The Philip Morris Institute for Public Policy Research

  • Isărescu M (2007) Globalization and European integration. http://www.bnro.ro

  • Krugman P, Obstfeld M (2006) International economics, theory and policy. Pearson Addison Wesley, USA

  • National Bank of Romania (2007a) The balance of payments and Romania’s position within the investments of 2006. http://www.bnro.ro

  • National Bank of Romania (2007b) The report on the financial stability during 2006. http://www.bnro.ro

  • National Bank of Romania (2007c) The report on the inflation, May 2007. http://www.bnro.ro

  • National Bank of Romania (2008) The press release of 14 February, 2008. http://www.bnro.ro

  • National Institute of Statistics (2007) Press release no. 23/2007, 9th February 2007. http://www.insse.ro/

  • National Institute of Statistics (2008) Press release no.31/2008, 11th February 2008. http://www.insse.ro/

  • Pălăngean DC (2007a) A mix for Romania. In: The financial market (Piata financiara), vol 11. pp 4–6

  • Pălăngean DC (2007b) The economy closes itself!. In: The financial market (Piata financiara), vol 2. pp 22–23

  • Pălăngean DC (2008) The guillotine of the deficit. In: The financial market (Piata financiara), vol 2. pp 4–6

Download references

Author information

Authors and Affiliations

  1. Academy of Economic Studies, Bucharest, Romania

    Ana Bal

Authors
  1. Ana Bal
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ana Bal.

Appendix

Appendix

Figures 1 and 2.

Fig. 1
figure 1

The deficit of current account (% of GDP). Source: NBR reports

Full size image
Fig. 2
figure 2

FDI, annual inflows (in millions Euro). Source: NBR reports

Full size image

About this article

Cite this article

Bal, A. Is the Current Account Deficit a Problem for Romania?. Transit Stud Rev 15, 499–510 (2008). https://doi.org/10.1007/s11300-008-0024-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11300-008-0024-3

Keywords

JEL Classification

Search

Navigation