The order of the countries in graph 2 is the same of graph 1 (see list below).
Comments to Graph 2. The higher deficits per inhabitant (Current Account Balance per capita below -3000 dollars per inhabitant) corresponds to country number 2 (Spain) and number 9 (Greece). The degree of deficit per head is lower than 2000 dollars in a great majority (14 out of 18 top total deficit countries), including the case of the United States. It is much higher in the cases of Spain and Greece, with more than 3000 dollars of deficit per capita, what is a problem, having into account that those countries have a low degree of industrial development and they should foster industry for sustaineable development of other production sectors. Countries by total deficit in graph 2 appear in the same order than the countrydeficit countries of graph 1.
Causes and consequences of deficits and superavits:
The role of Exports, Imports and Current Account Balance:
International Econometric models show that foreign trade is usually positively associated with economic development, partly because Exports foster economic development from the demand side (more purcharsers of the goods and services produced by the country) and partly because Exports increase the capacity to increase Imports of raw materials and other goods which have a highly positive effect from the supply side, allowing the country to expand domestic production, usually both in industrial and non industiral sectors. Although the role of the demand has been widely studied and recognized, the important role of supply has unfortunately received less attention in economic studies and policies. Interesting articles in this regard, free downloadble, are included in our journal IJAEQS Vol. 3-1 for the cases of Europe and North America, and in Vol. 4-1 for Asia, Africa and Latin America (to access click on the selected article and then click on "Download" at the Abstract page).
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