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Description:
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The article is devoted to current account deficit and economic growth in Visegrad
countries. At the present stage we have all prerequisites to talk about the assessment of the effectiveness of transformational changes that have occurred in the region. However,
accession to the EU and the abolition of internal borders, paradoxically, radically
weakened domestic interest in Central European neighbors.Nevertheless, Visegrad states continued its development in the frame of large Europe. It is worth mentioning the high volatility of FDI in Hungary and Poland, which emphasizes the new discussions about the influence of FDI and portfolio investments on the Visegrad countries vulnerability. Using impulse response function we discovered the different impact of current account to GDP growth. The positive effect was detected only for Slovakia that has lowest
net international investment position along with foreign debt and high rate of
unemployment. The method we implemented could be used for identifying the impact financial account and capital account on GDP. |