Capital Account

Summary of Capital Account

Entries in a nation’s balance of payment accounts reflecting long- or shortterm loans made to other countries, or by other countries to the recording nation. See Balance of Payments.

(Main Author: William J. Miller)

Capital Account and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Capital Account: A summary of a country’s international borrowing and lending transactions, including its foreign borrowing (investments by foreigners in the home country) as well as its lending or investments in other countries. Along with the current account, it is one of the principal components of the overall balance of payments.

Capital Account in International Trade

Meaning of Capital Account, according to the Dictionary of International Trade (Global Negotiator): The long and short capital imports and exports of a country in the balance of payment.