Uz Akdogan, I;
Geldi, HK;
(2013)
Revisiting the Twin Deficit Hypothesis for the Economies of Europe.
The Journal of European Theoretical and Applied Studies
, 1
(1)
pp. 53-65.
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Abstract
This study presents empirical evidence linking the current account balance to its major determinants such as exchange rate, interest rate and budget balance in 7 of the EU member countries: Bulgaria, Greece, Ireland, Italy, Latvia, Portugal and Spain. Using the panel version of various cointegration tests, we find a long-run relationship between the current account and its determinants. The long-run coefficient of the interest rate is found statistically significant in all estimation techniques. On the other hand, weak evidence is found for the existence of the twin deficit hypothesis.
| Type: | Article |
|---|---|
| Title: | Revisiting the Twin Deficit Hypothesis for the Economies of Europe |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | http://www.thejetas.org/?sayfa=17&id=18 |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Twin deficit, Current account balance, Budget deficit |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10086718 |
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