ZNACZENIE OBROTÓW BIEZACYCH I KAPITALOWYCH DLA STABILNOSCI FINANSÓW ZAGRANICZNYCH. PRZYKLAD KRAJÓW GRUPY WYSZEHRADZKIEJ

In this paper, we examine the foreign financial stability of the Visegrad Group (VG) over the period 1995-2015, by analysing the level and dynamics of the current and capital account (CCA) balance in relation to GDP. The aim is to compare the reasons for variability of trends of GDP and the CCA comp...

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Bibliographic Details
Published in:Unia Europejska.pl 2016-07, Vol.239 (4), p.41
Main Author: Sawicki, Janusz
Format: Article
Language:Polish
Subjects:
Balance of payments
Capital assets
Comparative studies
Current accounts
Economic growth
GDP
Gross Domestic Product
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Summary:In this paper, we examine the foreign financial stability of the Visegrad Group (VG) over the period 1995-2015, by analysing the level and dynamics of the current and capital account (CCA) balance in relation to GDP. The aim is to compare the reasons for variability of trends of GDP and the CCA components in the VG in order to indicate the possible source of deterioration of the financial stability of Poland and its major economic partners in Central Europe. Using formal models, which specify relationships between components of the CCA balance and GDP, we perform a statistical analysis of the lending gap in the balance of payments of the VG. A comparative analysis is carried out in USD. In this paper, we indicate how the ratios, calculated as a quotient of sum of GDP and sum of the CCA balances in the given period, show changes in the efficiency in the use of external savings for the economic growth. We define importance of the individual components of the current and capital account for the foreign financial stability with the aim to indicate different sensitivity of balance of payments to the changes of foreign trade balance and financial components of the CCA, i.e. investment income and current and capital transfers. We indicate that transmission of shock through a financial channel of the balance of payments is dependent not only on the price parameters (such as the exchange rate or interest rate), but also on the symmetry of capital flows.
ISSN:2085-2694