Prague Economic Papers 2012, 21(3):363-376 | DOI: 10.18267/j.pep.429

On Net External Assets in Developed and Transition Countries

Petr Duczynski
University of Hradec Králové, Faculty of Informatics and Management (petr.duczynski@uhk.cz).

The paper focuses on net external assets (NEA) in developed and transition countries in 1995, 2000, and 2005. The net international investment position is used as the main NEA indicator. In addition, alternative NEA estimates for developed countries are based on the cumulated current account, the cumulated financial and capital accounts, and the net factor income from abroad. The NEA estimates are divided by the gross domestic product (GDP) based on the U.S. dollar exchange rate. We identify the most important net creditors and net debtors, for which we study the average behavior of the real product growth, the unemployment rate, and the inflation rate among developed countries. We conclude that all the given estimates of NEA are good but imperfect.

Keywords: transition countries, developed countries, net external assets, the balance of payments
JEL classification: C82, F34, F41

Published: January 1, 2012  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Duczynski, P. (2012). On Net External Assets in Developed and Transition Countries. Prague Economic Papers21(3), 363-376. doi: 10.18267/j.pep.429
Download citation

References

  1. Barro, R. J., Mankiw, N. G., Sala-i-Martin, X. (1995), "Capital Mobility in Neoclassical Models of Growth." American Economic Review, 85(1), pp. 103-115.
  2. Duczynski, P. (2000), "Capital Mobility in Neoclassical Models of Growth: Comment." American Economic Review, 90(3), pp. 687-694. Go to original source...
  3. Duczynski, P. (2009), "On Net External Assets in Regions and States of the U.S.A." Prague Economic Papers, 18(4), pp. 342-352. Go to original source...
  4. International Monetary Fund (2002), International Financial Statistics Yearbook, Washington, DC.
  5. International Monetary Fund (2007), International Financial Statistics Yearbook, Washington, DC. Go to original source...
  6. Kmenta, J. (1997), Elements of Econometrics, Ann Arbor: University of Michigan Press, second edition. Go to original source...
  7. Lane, P. R., Milesi-Ferretti, G. M. (2001), "The External Wealth of Nations: Measures of Foreign Assets and Liabilities for Industrial and Developing Countries." Journal of International Economics, 55(2), pp. 263-294. Go to original source...
  8. Obstfeld, M., Rogoff, K. (1996), Foundations of International Macroeconomics, Cambridge, MA: MIT Press.
  9. Samuelson, P. A., Nordhaus, W. D. (1998), Economics, New York: Irwin/Mc Graw-Hill, Sixteenth edition.
  10. Sinn, S. (1990), "Net External Asset Positions of 145 Countries: Estimation and Interpretation." Kieler Studien 234, Tübingen: Mohr.
  11. Summers, R., Heston, A. (1991), "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988." Quarterly Journal of Economics, 106(2), pp. 327-368. Go to original source...
  12. Survey of Current Business, U.S. Department of Commerce, Bureau of Economic Analysis, various issues.
  13. World Bank (1994), World Data 1994, CD-ROM, machine-readable database, Washington, DC.
  14. World Bank (1995), World Tables 1995, Baltimore, MD: Johns Hopkins University Press.

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.