Twin deficits phenomenon in small islands: an empirical investigation by panel data analysis
AbstractThis article empirically investigates the direction of causality between current account balance and the overall budget balance of a selected 24 small island state economies by conducting panel data econometric techniques. The results of both bivariate and pairwise Granger causality tests suggest that there is unidirectional causation which runs from current account balance to the overall budget balance. On the other hand, no evidence has been obtained on the causation which runs from budget balance to current account balance in small island states.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 16 (2009)
Issue (Month): 15 ()
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- Ahmad Zubaidi Baharumshah & Evan Lau, 2009. "Structural breaks and the twin deficits hypothesis: Evidence from East Asian countries," Economics Bulletin, AccessEcon, vol. 29(4), pages 2517-2524.
- Henryk Gurgul & Lukasz Lach, 2012.
"Two deficits and economic growth: case of CEE countries in transition,"
AGH University of Science and Technology, Faculty of Management, vol. 12, pages 79-108.
- Gurgul, Henryk & Lach, Łukasz, 2012. "Two deficits and economic growth: Case of CEE countries in transition," MPRA Paper 52257, University Library of Munich, Germany.
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