1. $ their$ importance$ and$ their$ potential$ path$ in$ the$ global$economy$have$been$taken$a$mainstream$debate$on$the$international$macroeconomic$ outlook.$ This$ research$ examined$ the$ determinants$ of$ current$ account$ imbalance$ in$ global$ economy.$I$employed$two$econometric$techniques$to$find$the$determinants$empirically.$The$ first,$ difference$ GMM$ dynamic$ panel$ and$ second,$ system$ GMM$ dynamic$ panel$ estimators.$ This$ study$ specially$ designed$ to$ deal$ with$ the$ key$ problems$ of$ the$ past$ literature$ of$ the$ global$ current$ account$ imbalance;The$ nature$ of$ current$ account$ imbalance
2. $ current$ account$ balance$ has$ positive$ link$ with$ commodity$ price$real$GDP$growth$and$trade$openness$in$emerging$economies,$whereas$negative$link$in$ developed$ economies.$ In$ contrast,$ it$ has$ a$ significant$ negative$ channel$ with$ net$ foreign$ assets,$ real$ effective$ exchange$ rate$ and$ exchange$ rate$ stability$ in$ terms$ of$ emerging$ economies,$ on$ the$ other$ hand$ positive$ channel$ with$ these$ variables$ except$ real$ effective$ exchange$ rate.$ However,$ to$ overcome$ endogeneity,$ simultaneity$ and$ omitted$ variable$ bias$ the$specification$tests$(Sargan$and$Arellano^Bond)$support$the$estimating$results.$$ $ Finally,$ this$ research$ reveals$ the$ implication$ of$ incorporating$ new$ determinants$ such$ as$ commodity$ price,$ exchange$ rate$ stability$ and$ de^jure$ capital$ openness.$ Compacting$ this$ intuition;$;present$ the$ same$ story:$ the$ exogenous$ determinants$ have$ a$ strong$ impact$ on$ current$ account$ balance.$ $ In$ particular,2003
3. $Fiscal$policy$in$debt$constrained$economies;$ M Aguiar;National$ Bureau$of$Economic$Research,2011
4. $International$reserves$management$and$the$current$account;$ J Aizenman;National$ Bureau$of$Economic$Research,2006