Twin Deficits in Africa_2_Manuscript_11.2019.pdf (162.71 kB)
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Revisiting the twin deficits hypothesis: new evidence from nonlinear tests

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journal contribution
posted on 13.12.2019, 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.

History

School

  • Business and Economics

Department

  • Economics

Published in

Applied Economics Letters

Volume

27

Issue

19

Pages

1602 - 1606

Publisher

Taylor & Francis (Routledge)

Version

AM (Accepted Manuscript)

Rights holder

© Informa UK Limited, trading as Taylor & Francis Group

Publisher statement

This 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.

Acceptance date

06/12/2019

Publication date

2019-12-24

Copyright date

2019

ISSN

1350-4851

eISSN

1466-4291

Language

en

Depositor

Dr Ahmad Hassan Ahmad. Deposit date: 10 December 2019