The Role of Macroeconomic Stability in Current Account Balances

This study aims to find out the role of macroeconomic stability in current account balances. The analysis is completed for the period between 1980 and 2016 for 97 countries. The macroeconomic stability is represented by an index created with the countries’ inflation rate (CPI), growth rate, unemploy...

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Main Authors: Murat Çetrez, Yasin Barış Altaylıgil
Format: Article
Language:English
Published: Istanbul University Press 2022-12-01
Series:İstanbul İktisat Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9FCD1B84A9C44A2F98000802B9D5E6FD
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author Murat Çetrez
Yasin Barış Altaylıgil
author_facet Murat Çetrez
Yasin Barış Altaylıgil
author_sort Murat Çetrez
collection DOAJ
description This study aims to find out the role of macroeconomic stability in current account balances. The analysis is completed for the period between 1980 and 2016 for 97 countries. The macroeconomic stability is represented by an index created with the countries’ inflation rate (CPI), growth rate, unemployment rate, and fiscal balance data. It is found that macroeconomic stability is one of the important determinants of current account balances like institutional quality and financial development. It has negative and statistically significant relationships with current account balances for four different country groups: developing countries, all countries except industrial, all countries except industrial and African countries, and all countries. Results show that macroeconomic stability is a crucial determinant for developing countries rather than high-income countries.
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issn 2602-3954
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publishDate 2022-12-01
publisher Istanbul University Press
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series İstanbul İktisat Dergisi
spelling doaj-art-467311d9fb024b458e96abb345d974bd2025-08-20T02:28:28ZengIstanbul University Pressİstanbul İktisat Dergisi2602-39542022-12-0172256959710.26650/ISTJECON2022-1172316123456The Role of Macroeconomic Stability in Current Account BalancesMurat Çetrezhttps://orcid.org/0000-0001-9567-7644Yasin Barış Altaylıgil0https://orcid.org/0000-0002-7007-8431İstanbul Üniversitesi, İstanbul, TürkiyeThis study aims to find out the role of macroeconomic stability in current account balances. The analysis is completed for the period between 1980 and 2016 for 97 countries. The macroeconomic stability is represented by an index created with the countries’ inflation rate (CPI), growth rate, unemployment rate, and fiscal balance data. It is found that macroeconomic stability is one of the important determinants of current account balances like institutional quality and financial development. It has negative and statistically significant relationships with current account balances for four different country groups: developing countries, all countries except industrial, all countries except industrial and African countries, and all countries. Results show that macroeconomic stability is a crucial determinant for developing countries rather than high-income countries.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9FCD1B84A9C44A2F98000802B9D5E6FDcurrent account balancesmacroeconomic stabilitypanel data analysis
spellingShingle Murat Çetrez
Yasin Barış Altaylıgil
The Role of Macroeconomic Stability in Current Account Balances
İstanbul İktisat Dergisi
current account balances
macroeconomic stability
panel data analysis
title The Role of Macroeconomic Stability in Current Account Balances
title_full The Role of Macroeconomic Stability in Current Account Balances
title_fullStr The Role of Macroeconomic Stability in Current Account Balances
title_full_unstemmed The Role of Macroeconomic Stability in Current Account Balances
title_short The Role of Macroeconomic Stability in Current Account Balances
title_sort role of macroeconomic stability in current account balances
topic current account balances
macroeconomic stability
panel data analysis
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/9FCD1B84A9C44A2F98000802B9D5E6FD
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