Some Implications
According to the results, foreign ownership of the assets deteriorates current account balance through the investment account and improves it thorough the trade account; positive effects of the latter might outweigh or not the negative effects of the former. However, even in the trade balance, positive effects of foreign ownership on trade balance may not prevail over "structural patterns" created by transition, effects of growth, and availability of credits. This implies deterioration in the trade balance and additional deterioration of the current account balance. The MNS average net balances for current account, investment account, trade account, and other accounts (services, transfers, and remittances) are in Table 4a, while yearly average for NMS considered an entity are in Table 4b. The development in the whole period by country is depicted in Graph 5a and for NMS as an entity in Graph 5b.