The Spanish Current Account Revisited: Descriptive and Empirical Research from 1993 to 2018

Rodrigo, Alejandro (2019): The Spanish Current Account Revisited: Descriptive and Empirical Research from 1993 to 2018.

Abstract

The current account in general and the trade balance in particular can be useful indicators of competitiveness. Capital investments are undertaken to increase productive capacity and enhance competitive position, but if competitors also invest wisely or our own investments generate a misallocation of resources the competitive position may remain unchanged or even get worse. Empirical research regarding the sustainability of persistent current account deficits for the Spanish economy aims to provide evidence about the predictability of future financial crises. In addition, further analysis is performed concerning the recent current account adjustment in order to answer the inquiries relating its continuity.

• Item Type: MPRA Paper
• Language: English
• Keywords: current account deficits, trade balance, capital expenditure, unit labor cost, competitive position, intertemporal budget constraint, sustainability.
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; F - International Economics > F3 - International Finance > F30 - General; F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics

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