Brada, Josef C.; Tomsik, Vladimír - Zentrum für Europäische Integrationsforschung (ZEI), … - 2003
We show that the imputation of reinvested profits of the subsidiaries of foreign firms as a debit item on a host country's balance of payments account tends to overstate the current account deficit and to make the host country seem more vulnerable to financial crisis. We also show that, because...