Middle Eastern Current Account Imbalances Not Excessive, Study Finds.
The article examines if Middle Eastern countries have excessive current account imbalances. By using a dynamic panel regression, the researchers estimated the medium-term current account positions of different types of countries in the region. They found that the actual current account imbalances of Middle Eastern countries are generally not excessive when compared to their expected norms. This suggests that the fundamental determinants used to predict current account positions in the region are reliable.