• Corpus ID: 34166362

AN EMPIRICAL INVESTIGATION FOR THE TWIN DEFICITS HYPOTHESIS IN PAKISTAN

@inproceedings{Mukhtar2007ANEI,
  title={AN EMPIRICAL INVESTIGATION FOR THE TWIN DEFICITS HYPOTHESIS IN PAKISTAN},
  author={Tahir Mukhtar and Muhammad Farhan Mahamad Zakaria and Mehboob Ahmed},
  year={2007}
}
Pakistan constitutes a valuable case study for investigating the dynamics of persistently high rates of budget and current account deficits. In this paper an attempt has been made to empirically test the twin deficits hypothesis in Pakistan using quarterly time-series data for the period 1975 to 2005. The co-integration results indicate the existence of a longrun relationship between the deficits, while the Granger-causality test shows that bi-directional causality runs between the two… 

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