Analysis on the trade imbalances within the European Union

Released on by Valerio Zoccante
preview-18

  • Analysis on the trade imbalances within the European Union Book Detail

  • Author : Valerio Zoccante
  • Release Date : 2015-07-01
  • Publisher : GRIN Verlag
  • Genre : Business & Economics
  • Pages : 74
  • ISBN 13 : 3668009325
  • File Size : 5,5 MB
DOWNLOAD BOOK

Analysis on the trade imbalances within the European Union by Valerio Zoccante PDF Summary

Book Description: Master's Thesis from the year 2015 in the subject Economics - Macro-economics, general, grade: B, University of Southern Denmark, language: English, abstract: The aim of this work is to assess the factors that have been affecting the imbalances of trade within countries of the European Union. The analysis takes into consideration the elements that could affect the balance of trade, thus saving or investment. The variables that are included in the panel data framework are related to productivity, inflation, consumption, wage level, capital movements, demography of the population, economic growth, public and private debt levels. A panel data, that leaves out countries from East Europe, is created, and takes values that go from 2002 to 2013. The panel data shows that technology gaps and capital movements have been the main factors that affected the balance of trade of the peripheral countries. Peripheral countries did not invest enough in projects that could enhance the productivity, leading to a competitiveness loss that was not followed by a correction of the wage levels. Moreover, capital movements have been financing consumption surges in Greece and Portugal, whereas in Spain and Ireland those capitals have fueled credit booms and house bubbles. Therefore, those countries have been experiencing a worsening of their balance of trade, and investors have not been willed anymore to finance additional debt. Indeed, Members of the euroarea could not guarantee that the central bank could play the role of lender of last resort. Knowing that, in a currency union, the external position of a country represents its capacity of producing goods and services that could serve the debt in a troubled time, in the eyes of the investors the balances of trade of the peripheral eurozone countries became relevant during the European sovereign debt crisis. In the European framework, in order to decrease the imbalances of trade within the Members, fiscal transfers to peripheral countries could be beneficial for decreasing the cost that peripheral countries need to undergo during the adjustment period, whereas reforms that aim to enhance productivity in the peripheral countries and increase the mobility and the flexibility of the product and labor markets could be highly helpful. The following work highlights all those elements in a empirical framework, relating, however, the results to the literature that has been developed around the European case and the optimum currency area.

Disclaimer: www.yourbookbest.com does not own Analysis on the trade imbalances within the European Union books pdf, neither created or scanned. We just provide the link that is already available on the internet, public domain and in Google Drive. If any way it violates the law or has any issues, then kindly mail us via contact us page to request the removal of the link.

Competitiveness in the European Economy

Competitiveness in the European Economy

File Size : 77,77 MB
Total View : 7269 Views
DOWNLOAD

This book deals with the relationship between the competitiveness of countries in Europe and the analysis of macroeconomic imbalances. It focuses mainly on a Eu

An Economic Analysis of the EU

An Economic Analysis of the EU

File Size : 59,59 MB
Total View : 1292 Views
DOWNLOAD

An overview of the elements of both microeconomic and macroeconomic theory related to the analysis of the EU. Its analyses are based on new trade theory and new

The Euro’s Effecton Trade Imbalances

The Euro’s Effecton Trade Imbalances

File Size : 43,43 MB
Total View : 2490 Views
DOWNLOAD

When does trade become a one-way relationship? We study bilateral trade balances for a sample of 18 European countries over the period from 1948 through 2008. W

The Economics of Brexit

The Economics of Brexit

File Size : 79,79 MB
Total View : 5560 Views
DOWNLOAD

The Economics of Brexit – Revisited builds upon and extends the analysis contained within the authors' previous book, The Economics of Brexit: A Cost-Benefit