Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study

Jayaraman, T.K and Lau, Evan (2008) Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study. Working Paper. School Of Economics University Of The South Pacific.

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Official URL: https://www.researchgate.net/publication/266098541

Abstract

Resorting to panel data investigation, this study seeks to test the causal relationships between current account imbalances and budget deficits in Pacific island countries. The study findings are that current account imbalances and budget deficits are cointegrated, although there is no long run causality relationship between current account deficit and budget deficit and money supply. However, in the short run, there is a bidirectional relationship between current account deficit and budget deficit. The study suggests some policy measures.

Item Type: Monograph (Working Paper)
Uncontrolled Keywords: budget deficit, current account deficit, panel data analysis, Pacific island countries, research, Universiti Malaysia Sarawak, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education
Subjects: H Social Sciences > HB Economic Theory
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: ROSSAZANA AB RAHIM
Date Deposited: 28 Nov 2017 02:13
Last Modified: 28 Nov 2017 02:13
URI: http://ir.unimas.my/id/eprint/18565

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