In a simplified model GDP growth depends on the demand effect of private investment growth and on the growth of the private savings ratio. In a generalized model private investment (IP) has to be supplemented by the trade balance (E) and the budget deficit (D), their sum being termed NPCE...

This paper analyses the trade balance effects of Europe agreements (EA) between the EU-15 and four new EU members from Central and Eastern Europe (CEEC-4) using both static and dynamic panel data approaches. Specifically, the system Generalized Method of Moments (GMM, Blundell and Bond, 1998)...