IDEAS home Printed from https://ideas.repec.org/a/spr/empeco/v24y1999i3p389-402.html
   My bibliography  Save this article

Causality tests of budget and current account deficits: Cross-country comparisons

Author

Listed:
  • Ahmed M. Khalid

    () (Department of Economics, National University of Singapore, 10 Kent Ridge Crescent, Singapore 119260)

  • Teo Wee Guan

    () (Ministry of Community Development, 512, Thomson Road, MCD Building, Singapore 298136)

Abstract

This study attempts to determine the causal relationship between budget and current account deficits as well as the direction of such causality. A selected sample of some developed and developing countries with annual time series data is used and cointegration techniques are applied to bring evidence regarding this important issue. Our results do not support any long-run relationship between the two deficits for developed countries while the data for developing countries do not reject such a relationship. However, our results suggest a causal relationship between the two deficits for most of the sample countries.

Suggested Citation

  • Ahmed M. Khalid & Teo Wee Guan, 1999. "Causality tests of budget and current account deficits: Cross-country comparisons," Empirical Economics, Springer, vol. 24(3), pages 389-402.
  • Handle: RePEc:spr:empeco:v:24:y:1999:i:3:p:389-402
    Note: received: November 1996/final version received: September 1998
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/00181/papers/9024003/90240389.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Twin deficits · cointegration · Granger causality · developed vs. developing countries;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:empeco:v:24:y:1999:i:3:p:389-402. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.