COMPARISON OF THE EXTERNAL BALANCE DEVELOPMENT IN THE CZECH REPUBLIC AND SLOVAKIA

Authors

  • doc. Ing. Jana Marková, CSc. Faculty of Finance and Accounting, University of Economics, Prague
  • doc. Ing. Ilona Švihlíková, Ph.D. University College of Business in Prague

DOI:

https://doi.org/10.61357/sehs.v15i1.23

Keywords:

international net position, foreign indebtedness, external imbalances, investment, domestic savings

Abstract

The indicators of external balance and net investment position show the macroeconomic and financial stability of a given country towards foreign countries. Considering the intensive interconnectedness between countries, from the trade and investment flows perspective, this topic is crucial, since many distortions occur in the complex global system. Primarily in the case of emerging countries it is necessary to consider the whole macroeconomic context, especially the effort for convergence towards more developed countries.  The article deals with the topic of external (im)balances in the case of the Czech Republic and Slovakia. The main statistical source is the balance of payments and the investment position, which can show the origins of any external imbalances. Determining the cause of the imbalances is connected with recommendations aiming at changes in the economic model of the two countries.

References

BAKULE, V. (1976). Světové finance. Praha: SNTL.

CZECH NATIONAL BANK (2021). Balance of payments statistics. (Statistika platební bilance). [online]. Available at: https://www.cnb.cz/cs/statistika/platebni_bilance_stat/investicni_pozice/

DELOITTE (2019). Made in the world. Analýza českého zahraničního obchodu a pozice v globálních hodnotových řetězcích. Economics and Statistics. [online]. Available at: https://www2.deloitte.com/cz/cs/pages/about-deloitte/articles/analyza-ceskeho-zahranicniho-obchodu.html#

EUROSTAT (2020a). Current account. [online]. Available at: https://ec.europa.eu/eurostat/databrowser/view/tipsbp20/default/table?lang=en

EUROSTAT (2020b). The macroeconomic imbalance procedure. [online]. Available at: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=The_Macroeconomic_Imbalance_Procedure_(MIP)_introduced#The_MIP_indicators

EUROSTAT (2020c). Foreign direct investment – rates of return. [online]. Available at: https://ec.europa.eu/eurostat/statistics-explained/index.php/Foreign_direct_investment_-_rates_of_return#General_overview

HELÍSEK, M. (2004). Měnová krize (empirie a teorie). Professional Publishing, Praha. ISBN 80-86419-82-7.

IMF (2009). Balance of payments and international investment position manual. Washington, D.C.

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Published

2022-08-01

How to Cite

Marková, J., & Švihlíková, I. (2022). COMPARISON OF THE EXTERNAL BALANCE DEVELOPMENT IN THE CZECH REPUBLIC AND SLOVAKIA. Socio-Economic and Humanities Studies, 15(1), 5–25. https://doi.org/10.61357/sehs.v15i1.23

Issue

Vol. 15 No. 1 (2022): Socio-Economic and Humanities Studies

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