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Twin deficits in Morocco: An empirical investigation

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  • Mossadak Anas, PhD researcher

    (Department of economics-University Mohamed V, Rabat-Agda)

Abstract

This paper investigates the hypothesis of twin deficits in Morocco. According to this theoretical concept, the budget deficit is the main cause of the current account deficit. The Empirical results obtained from the impulse responses analysis of the VAR model and the Granger-causality test indicate the existence of an unidirectional causality going from the current account deficit to the fiscal deficit. This implies the existence of reverse causality i.e. the current account deterioration is the main cause of the fiscal deficit in Morocco

Suggested Citation

  • Mossadak Anas, PhD researcher, 2013. "Twin deficits in Morocco: An empirical investigation," International Journal of Business and Social Research, LAR Center Press, vol. 3(7), pages 160-172, July.
    • Handle: RePEc:lrc:larijb:v:3:y:2013:i:7:p:160-172
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    References listed on IDEAS

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