Twin Deficits in Africa_2_Manuscript_11.2019.pdf (162.71 kB)
Revisiting the twin deficits hypothesis: new evidence from nonlinear tests
journal contributionposted on 2019-12-13, 09:41 authored by Ahmad Hassan AhmadAhmad Hassan Ahmad, Olalekan B Aworinde
This article investigates linear and nonlinear causal linkages between fiscal deficits and current account deficits in a sample of 12 African countries using quarterly data for the period 1980:1–2018:4. The results indicate evidence of unidirectional causality from current account deficits to the fiscal deficits in four countries while a unidirectional causality from fiscal deficit to current account deficit is found in five countries. Results from panel causality test revealed evidence of bidirectional causality between the two deficits. These conclusions suggest that policy to tackle one of the deficits should also take the other into consideration.
- Business and Economics
Published inApplied Economics Letters
Pages1602 - 1606
PublisherTaylor & Francis (Routledge)
- AM (Accepted Manuscript)
Rights holder© Informa UK Limited, trading as Taylor & Francis Group
Publisher statementThis is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics Letters on 24 December 2019, available online: http://www.tandfonline.com/10.1080/13504851.2019.1707473.