This study examines the inter-linkages between Government budget balance, and external balance for a transition economy in South East Asia ??? Cambodia. The empirical results of the quarterly data between 1996 and 2006, support twin deficits hypothesis that is the budget deficits do cause external deficits, in the short run. These two macroeconomics variables are moving together in the long run. For implication, these findings provide an insight for the Cambodia's policy design and formulation.
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Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number
11/09.
Find related papers by JEL classification: F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Sebastian Edwards, 2002.
"Does the Current Account Matter?,"
NBER Chapters,
in: Preventing Currency Crises in Emerging Markets, pages 21-76
National Bureau of Economic Research, Inc.
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