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… Expand

Tables from this paper

TWIN DEFICITS HYPOTHESIS: THE CASE OF PAKISTAN 1972-2008
Pakistan represents a valuable case study for investigating the dynamics of steadily high rates of budget and current account deficits. In this study an attempt has been made to empirically test theExpand
The twin deficits hypothesis in the SAARC countries: an empirical investigation
Twin deficits hypothesis postulates that there is a strong positive linear relationship between a country's budget deficit and its current account deficit. This paper empirically investigates theExpand
Twin Deficit Hypothesis: A Case of Pakistan
The prime motive of this study is to scrutinize the twin deficit for annual time series data over the period 1990-2010 for Pakistan. Twin deficit hypothesis expressed that an expansion in budgetExpand
The Twin Deficits Hypothesis: An Empirical Investigation For Turkey (1987-2005)
The aim of this study is to assert empirically the effect of budget deficit on current account deficit, i.e. twin deficits hypothesis, for Turkey over the period 1987-2005 by means of quarterly data.Expand
An Empirical Investigation of Twin Deficits Hypothesis: Evidence from India
The paper empirically examines the relationship between fiscal deficit and current account deficit in India for the period from 1970–1971 to 2013–2014. The Autoregressive Distributed Lag (ARDL)Expand
VALIDITY OF TWIN DEFICIT HYPOTHESIS IN CASE OF PAKISTAN: USING DIFFERENT CO- INTEGRATION TECHNIQUES
Pakistan is facing high rates of budget and current account deficits. The validity of the twin deficits issue is examined in the context of Pakistan economy using annual time series data for theExpand
Empirical Investigation of the Twin Deficits Hypothesis: The Egyptian Case (1990-2012)
This paper investigates the relationship between current account and government budget balances. We tested the validity of the Twin Deficits Hypothesis (TDH)in Egypt, using annual time series dataExpand
The Twin Deficits Phenomenon In Turkey: An Empirical Investigation
The aim of this study is to explore the relationship between budget deficit and the current account deficit for Turkey over the period 19872005. Considering the structural breaks in the series, theExpand
The Twin Deficits Hypothesis: Evidence from Ghana
Purpose – This paper investigates the twin deficit hypothesis for Ghana in view of the persistent co-movement between the budget deficit (BD) and current account deficit (CAD) over the past threeExpand
An Empirical Investigation of the Twin Deficits Hypothesis in Nigeria: Evidence from Cointegration Techniques
Nigeria has not been able to generate adequate revenue to match her expenditure over the years. It is not surprising therefore, that the country frequently operates deficit budget with its negativeExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 37 REFERENCES
Twin deficits during the 1980s: An empirical investigation
Abstract This study uses multivariate time series analysis to examine the linkages between federal budget deficits and merchandise trade deficits. Using a vectorautoregressive model, support is foundExpand
The twin deficits phenomenon: evidence from Greece
This paper explores the relationship between budget and trade deficits in a small open economy using annual data. The purpose of the paper is to test empirically the validity and rationale of theExpand
Causality tests of budget and current account deficits: Cross-country comparisons
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 andExpand
Twin Deficits: Apparition or Reality?
This paper uses cointegration and multicointegration analysis to explore the issue of twin deficits for the USA in the post-World War II period. The results suggest that prior to 1974 the systems ofExpand
The Twin Deficits Phenomenon: Evidence from Pakistan
Like most developing countries a steady budget deficit in Pakistan is the primary cause of all major ills of the economy. It has varied between 5.4 to 8.7 percent during last two decades. On theExpand
Current account and fiscal deficits: Evidence from five developing economies of Asia
The persistent and coinciding fiscal and external trade deficits have been in the economic spotlight largely because of its important policy implications concerning the long-term viability ofExpand
Budget Deficit Persistence and the Twin Deficits Hypothesis
This paper gauges the causal relationship between external and budget deficits by using Blanchard's overlapping generations model. This model sests the twin deficits hypothesis (i.e. there is aExpand
Fiscal policy and current account performance: International evidence on the twin deficits☆
Abstract Divergent predictions about the twin deficits relationship, which links the stance of fiscal policy to the current account balance, continue to emanate from variously specified theoreticalExpand
CURRENT ACCOUNT AND BUDGET DEFICITS: TWINS OR DISTANT COUSINS?
This paper develops a two-country micro-theoretic model consistent with the Ricardian equivalence hypothesis. Specifically, tax increases used to retire government debt will not affect privateExpand
On the Long-Run Determinants of the U.S. Trade Balance: A Comment
In a recent article in this joumal, Bahmani-Oskooee (1992) used the augmented Dickey-Fuller (ADF) test and a cointegration technique to detennine what variables have long-run relationships with theExpand
...
1
2
3
4
...