Approaches Affecting Current Account in the Balance of Payments

Abstract

This paper tries to elaborate on difficulties and challenges of the Western Balkan countries, that all seems to have problems with regard to the sustainability of their current account. After providing some insight about main approaches used for analyzing the balance of payments in general, this paper focuses on outcomes of variety of crisis and it tries to give some understanding on key elements that influence the balance of payments stance. Current account deficit seems to be attractive for analysis for quite some time and in that regard we find variety of approaches used. The paper provides brief information on methodologies used by different authors in attempting to answer the question about essential drivers of the developments in the current account.

DOI: 10.5901/ajis.2015.v4n3s1p417