Analysis of the determinants of the current account of the balance of payments of Serbia in the long term
DOI:
https://doi.org/10.71159/bizinfo250026MKeywords:
current account, balance of payments, foreign trade, macroeconomic policy, external imbalanceAbstract
One of the most complex tasks in conditions of rapid growth and constant structural changes is balancing between internal and external balance. Violation of the external balance is considered justified only if the attracted foreign capital aims to bridge the resource gap by investing in economic development at the expense of future debt repayment. In order to identify the sources of external imbalances, it is necessary to determine the factors that determine the movement of the current account of the balance of payments, which is what these paper deals with. The paper is structured to follow the development and analyze the determinants of Serbia's foreign positions during the period from 2005 to 2021. In addition, the analysis builds on theoretical and empirical achievements with the aim of providing answers to some current questions in this area. The balance of payments as a key indicator of the economic performance of an open economy plays a crucial role in defining the macroeconomic policy of a country. The results of the research will also have a practical dimension because they should show when adjustments are necessary in the management of the country's economic and development policy.
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