Abstract:

In countries that have passed from the central-planned system to the free market economy and are called the transitional economies, the impact of domestic savings on the balance of currency transactions along with economic integration has led to new discussions in the theory of the economy. The European Union is the most important example of this economic integration. This study examined the impact of domestic savings on the currency balance in the transitional economies of the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic and Slovenia in the period 2004-2019. The results of empirical analyses have found a short-term and long-term mutual causal relationship from domestic savings to currency transactions. The study on the basis of the country has found that in Poland and the Slovak Republic there is a causal relationship between the balance of customs transactions and domestic savings, and in Latvia and the Slovak Republic there is a causal relationship between the balance of customs transactions and domestic savings.

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