Current Account Deficits and Economic Growth

¿...This study aims to identify the main determinants of the external current account deficits in South Eastern European economies and to provide an assessment of the macroeconomic effects of their persisting large deficits. A critical assessment of theory and previous empirical analyses is presented in the opening chapters. The following empirical analysis is based upon eclectic, inter-temporal and saving ¿ investment approaches and utilises dynamic panel analysis. Overall, this is an impressive piece of work, exhibiting mastery of an important, but nowadays frequently neglected, area of macroeconomics. I was particularly impressed by the final chapter which brings together the findings of the individual analysis to provide a coherent ¿story¿ for the SEE economies. The key conclusion is that the persistent and large current account deficits in SEE have been, on balance, helpful to convergence is a very interesting one (and a brave one to make in the context of recent events). The candidate is to be congratulated on the clarity of expression and the quality of the presentation...¿ (Prof. Nick Adnett, Staffordshire University)