The effects of domestic savings on the current account balance, together with economic integrations, in the countries that transition from the central planned system to the free market economy and which are called transition economies, have led to new discussions in the theory of economics. The European Union is the most important example to these economic integrations. In this study, the effect of domestic savings on the current account balance in the transition economies of the European Union member Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia between 2004-2019 was investigated. As a result of empirical analysis, it was found from domestic savings to the current account balance in the short term and a mutual causality relationship was identified in the long term. When analyzed by country, it is determined that there is a causality relationship in Poland and Slovak Republic from current account balance to domestic savings, in Latvia and Slovak Republic from domestic savings to current account balance.
Domestic Savings, Current Account Balance, Panel Data.