Revisiting the Glick–Rogoff Current Account Model: An Application to the Current Accounts of BRICS Countries

  • Yushi YoshidaEmail author
  • Weiyang Zhai
Part of the Dynamic Modeling and Econometrics in Economics and Finance book series (DMEF, volume 27)


Understanding what drives the changes in current accounts is one of the most important macroeconomic issues for developing countries. Excessive surpluses in current accounts can trigger trade wars, and excessive deficits in current accounts can, on the other hand, induce currency crises. The Glick–Rogoff (1995, Journal of Monetary Economics) model, which emphasizes productivity shocks at home and in the world, fit well with developed economies in the 1970s and 1980s. However, the Glick–Rogoff model fits poorly when it is applied to fast-growing BRICS countries for the period including the global financial crisis. We conclude that different mechanisms of current accounts work for developed and developing countries.


BRICS countries Current accounts Glick–Rogoff model Global financial crisis Productivity shock 



Yoshida is grateful for financial support from JSPS KAKENHI 19K01673.


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© Springer Nature Switzerland AG 2021

Authors and Affiliations

  1. 1.Faculty of EconomicsShiga UniversityShigaJapan

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