Major Determinants of Current Account in Russia

摘要

The objective of this study is to uncover empirically factors that influence the Russian current account balance. This study employs the Johansen Coin-tegration analysis and Error Correction Model for the period from 1995 to 2008 on the quarterly basis. The empirical results illustrated the existence of long-run relationships between current account balance and selected variables. Sufficient evidence was found to assume that in the Russian Federation the current account is mostly affected by trade and financial variables rather than by mineral resources prices in the long-run. However, in the short-run, investments and prices of mineral resources appeared to have the most significant impact on the current account.