Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/196262
Year of Publication: 
2019
Series/Report no.: 
W.E.P. - Würzburg Economic Papers No. 100
Publisher: 
University of Würzburg, Department of Economics, Würzburg
Abstract: 
We investigate for the case of Germany the positive correlation between the corporate saving glut in the non-financial corporate sector and the current account surplus from a capital account perspective. By employing sign restrictions our findings suggest that mostly labor market, world demand and financial friction shocks account for the joint dynamics of excess corporate saving and the current account surplus. Household saving shocks, in contrast, cannot explain the correlation. We conclude that the corporate saving glut, explained through these factors, is the main driver of the current account surplus.
Subjects: 
current account
corporate saving
macro shocks
JEL: 
E32
F32
F45
Document Type: 
Working Paper

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