Twin Deficits in Africa_2_Manuscript_11.2019.pdf (162.71 kB)
Revisiting the twin deficits hypothesis: new evidence from nonlinear tests
journal contribution
posted on 2019-12-13, 09:41 authored by Ahmad Hassan AhmadAhmad Hassan Ahmad, Olalekan B AworindeThis 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 LettersVolume
27Issue
19Pages
1602 - 1606Publisher
Taylor & Francis (Routledge)Version
- AM (Accepted Manuscript)
Rights holder
© Informa UK Limited, trading as Taylor & Francis GroupPublisher 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
2019-12-06Publication date
2019-12-24Copyright date
2019ISSN
1350-4851eISSN
1466-4291Publisher version
Language
- en