We assess the sustainability of the current account (CA) balance, net international investment position (NIIP) and net external debt (NED) in a sample of EU countries using two complementary approaches. First, we employ both time-series and panel-data stationarity tests of current account...

We revisit the twin deficit relationship for a sample of 193 countries over the period 1980-2016, using a panel fixed effect (within-group) estimator, bias-corrected least-squares dummy variable, system GMM, and common correlated effects pooled estimation procedures. The analysis accounts also...

The euro area crisis highlights the issue of sovereign debt in a heterogeneous monetary union. This heterogeneity concerns, in particular, inflation rates, GDP growth rates, current account balances and ratios of public deficits and debts to GDP. This paper mainly aims to investigate such...

New Caledonia has a structural trade deficit. Public transfers from the French State amount to a large part of credits in the current account balance. The local currency, the franc XPF, has had a fixed parity against the euro since 1999. In prospect of independence, which would imply a loss (or...

We assess the sustainability of external imbalances for EU countries using panel stationarity tests of Current Account (CA) balance-to-GDP ratios and panel co-integration of exports and imports of goods and services, for the period 1970Q1–2015Q4. We find that: i) the country panel is...