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When does trade become a one-way relationship? We study bilateral trade balances for a sample of 18 European countries over the period from 1948 through 2008. We find that, with the introduction of the euro, trade imbalances among euro area members widened considerably, even after allowing for permanent asymmetries in trade competitiveness within pairs of countries or in the overall trade competitiveness...
For Serbia diminishing of current account deficit is a prerequisite for the regular repayment of external debt. It is necessary to attract a bigger amount of foreign direct investment when the process of privatization is finished. Motivation for investing in Serbia has to be intensified by the creation of attractive and stimulating environments. Until now, FDI was mostly directed to purchase of Serbian...
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