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The Impact of Fiscal Deficit on Economic Growth: Using the Bounds Test Approach in The Case of Morocco

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  • Gyasi, Genevieve

Abstract

The study employed the bounds test (ARDL) approach to cointegration to examine the long run and short run relationships between macroeconomic variables, fiscal deficit and economic growth in Morocco as the case study. The results show that fiscal deficit affect economic growth in the Moroccan economy in the long run as in the equilibrium correction was found to be significantly quick.

Suggested Citation

  • Gyasi, Genevieve, 2020. "The Impact of Fiscal Deficit on Economic Growth: Using the Bounds Test Approach in The Case of Morocco," MPRA Paper 98925, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:98925
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    References listed on IDEAS

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    More about this item

    Keywords

    fiscal deficit economic growth;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions

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