Changes in Secondary Income Accounts in Central and East European Countries

Abstract

Personal transfers, an important part of secondary income, are the result of temporary or permanent people`s movement to other economies. They have a significant role in the process of income distribution among the economies. European integration process led to the creation of an internal common market, which affected people`s migration and the amount of personal transfers. There is a need to verify the direction and the extent of this phenomenon, especially in the case of joining countries with different domestic income levels. The examination covered Central and East European countries, the scope of the research covered the changes in secondary income accounts according to factors pointed in literature: levels of domestic income and migration, and additionall, membership in European Union and exchange rate regimes. The aim of this research is to find the rules and patterns of their relations.

Keywords

• balance of payments
• secondary income
• current transfers