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dc.contributor.authorRavinthirakumaran, Navaratnam
dc.contributor.authorSelvanathan, Saroja
dc.contributor.authorSelvanathan, Eliyathamby A
dc.date.accessioned2019-02-22T04:47:02Z
dc.date.available2019-02-22T04:47:02Z
dc.date.issued2016
dc.identifier.issn1354-7860
dc.identifier.doi10.1080/13547860.2015.1053592
dc.identifier.urihttp://hdl.handle.net/10072/101336
dc.description.abstractTwin 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 the existence of this relationship in five South Asian Association for Regional Cooperation (SAARC) countries using time-series data for the period 1980–2012. The paper uses cointegration analysis, error correction modeling and Granger causality test under a vector autoregression framework. The results show that the direction of causality for the SAARC countries is mixed. The findings confirm that budget deficit causes current account deficit for Pakistan and Sri Lanka, whereas the reverse is true for India and Nepal. The direction of causality is found to be unidirectional from current account deficit to budget deficit in the short run for Bangladesh.
dc.description.peerreviewedYes
dc.languageEnglish
dc.publisherRoutledge
dc.relation.ispartofpagefrom77
dc.relation.ispartofpageto90
dc.relation.ispartofissue1
dc.relation.ispartofjournalJournal of the Asia Pacific Economy
dc.relation.ispartofvolume21
dc.subject.fieldofresearchApplied Economics not elsewhere classified
dc.subject.fieldofresearchApplied Economics
dc.subject.fieldofresearchPolicy and Administration
dc.subject.fieldofresearchBanking, Finance and Investment
dc.subject.fieldofresearchcode140299
dc.subject.fieldofresearchcode1402
dc.subject.fieldofresearchcode1605
dc.subject.fieldofresearchcode1502
dc.subject.keywordsBudget deficit
dc.subject.keywordsCurrent account deficit
dc.subject.keywordsSAARC
dc.subject.keywordsError correction
dc.subject.keywordsGranger causality
dc.subject.keywordsVector autoregression
dc.titleThe twin deficits hypothesis in the SAARC countries: an empirical investigation
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.hasfulltextNo Full Text
gro.griffith.authorSelvanathan, Saroja
gro.griffith.authorSelvanathan, Selva A.


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