The Extent, Excessiveness and Sustainability of Afghanistan’s Current Account

What is it about?

Current account (CA) data shows how a country transacts with other countries, or how a country performs in the international market. In this paper, we analyzed the size, optimal current account compared to the real current account, and health of the CA of Afghanistan from 2004 to 2019.

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Why is it important?

First, we provide a detailed descriptive analysis of the current account (CA) of Afghanistan. Second, we estimate the optimal CA and compare it with the real CA to find how different is the real CA from the optimal one. Finally, we have empirically determined whether the CA of Afghanistan is healthy or it will lead the country to economic bankruptcy.