Have a personal or library account? Click to login
Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia Cover

Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia

By: Vesna Bucevska  
Open Access
|Dec 2020

References

  1. 1. Algieri, B. (2013), “An empirical analysis of the nexus between external balance and government budget balance: The case of the GIIPS countries”, Economic Systems Vol. 37 No. 2, pp. 233-253.10.1016/j.ecosys.2012.11.002
  2. 2. Aristovnik, A., Zajc, K., (2001), “Current account performance and fiscal policy: Evidence on the twin deficits in Central and Eastern Europe”, In Stierle, M. H., Birringer, T. (Eds.), INFER Annual Conference - Economics of Transition: Theory, Experience and EU Enlargement, INFER, Verlag für Wissenschaft und Forschung, Berlin, pp. 121-140.
  3. 3. Bachman, D.D. (1992), “Why is the US current account deficit so large: Evidence from vector autoregressions”, Southern Economic Journal, Vol. 59, pp. 232-240.10.2307/1060527
  4. 4. Barro, R. J. (1989), “The Ricardian approach to budget deficits”, Journal of Economic Perspectives, Vol. 3 No. 2, pp. 37-52.10.1257/jep.3.2.37
  5. 5. Baharumshah, A. Z., Lau, E., Khalid, A.M. (2006), “Testing twin deficits hypothesis using VARs and variance decomposition”, Journal of the Asia Pacific Economy, Vol. 11 No. 3, pp. 331-354.10.1080/13547860600764245
  6. 6. Banday U. J., Aneja, R. (2016), “How budget deficit and current account deficit are interrelated in Indian economy”, Theoretical and Applied Economics, Vol. 23 No. 1, pp. 237-246.
  7. 7. Banday, U. J., Aneya, R. (2017), “Does fiscal deficit affect current account deficit in India? An econometric analysis”, Review of Market Integration, Vol. 9 No. 3, pp. 155-174.10.1177/0974929217744462
  8. 8. Banday, U. J., Aneya, R. (2019), “Twin deficit hypotheiss and reverse causality: A case study of China”, Palgrave Communications, Vol. 5 No. 93, pp. 1-10.
  9. 9. Barro, R. J. (1989), “The Ricardian approach to budget deficits”, Journal of Economic Perspectives, Vol. 3 No. 2, pp. 37-54.10.1257/jep.3.2.37
  10. 10. Bhat, J. A., Sharma, N. K. (2018), “The twin deficit hypothesis: Revisiting Indian economy in a non-linear framework”, Journal of Financial Economic Policy, Vol. 10 No. 3, pp. 386-405.10.1108/JFEP-09-2017-0082
  11. 11. Boljanovic, S. (2012), “A sustainability analysis of Serbia’s current account deficit”, Economic Annals, Vol. LVII No. 195, pp. 139-171.10.2298/EKA1295139B
  12. 12. Bolukbas, M., Topal, M. H., Hotunluoglu, H. (2018), “Testing Twin Deficit Hypotheis for EU-27 and Turkey: A panel granger causality approach under cross-sectional dependence”, Romanian Journal of Economic Forecasting, Vol. 21 No. 4, pp. 101-119.
  13. 13. Darrat, A. F. (1988), “Have large budget deficits caused rising trade deficits?”, Southern Economic Journal, Vol. 54 No. 4, pp. 879-887.10.2307/1059523
  14. 14. Eldemerdash, H., Metcalf, H., Maioli, S. (2014), “Twin deficits: New evidence from a developing (oil vs. non-oil) countries’ perspective,” Empirical Economics, Springer, Vol. 47 No. 3, pp. 825-851.10.1007/s00181-013-0771-9
  15. 15. Eurostat Database. (2020), “Homepage”, availiable at: https://ec.europa.eu/eurostat/data/database (7 October 2020)
  16. 16. Evans, P. (1988), “Is Ricardian equivalence a good approximation?”, Working Paper, Department of Economics, Ohio State University, May 1988.
  17. 17. Feldstein, M. (1992), “Analysis: The budget and trade deficits aren't really twins”, Challenge, Vol. 35 No. 2, pp. 60-63.10.1080/05775132.1992.11471580
  18. 18. Fleming, J. M. (1962), “Domestic financial policies under fixed and under floating exchange rate”, Staff Papers International Monetary Fund, Vol. 10, pp. 369-380.10.2307/3866091
  19. 19. Fidrmuc, J. (2003), “The Feldstein–Horioka puzzle and twin deficits in selected countries”, Economic Change and Restructuring, Vol. 36 No. 2, pp. 135-152.10.1023/B:ECOP.0000012256.88112.c2
  20. 20. Furceri, D., Zdzienicka, A. (2018), “Twin deficits in developing economies”, IMF Working Paper 18/170, July 2018.10.5089/9781484364000.001
  21. 21. Ganchev, G. T. (2010), “The twin deficit hypothesis: The case of Bulgaria,” Financial Theory and Practice, Vol. 34 No. 4, pp. 357-377.
  22. 22. Ganchev, G. T., Stavrova, E., Tsenkov, V. (2012), “Testing the Twin Deficit Hypothesis: The case of Central and Eastern Europe countries”, International Journal of Contemporary Economics and Administrative Sciences, Vol. 2 No. 1, pp. 1-21.
  23. 23. Gabrisch, H. (2015), “On the twin deficits hypothesis and the import intensity in transition countries,” International Economics and Economic Policy, Vol. 12 No. 2, pp. 205-220.10.1007/s10368-014-0272-0
  24. 24. Grubisic, Z., Kamenkovic, S., Zdravkovic, A. (2018), “Impact of government balance and exchange rate regime on current account during economic cycle: Evidence from CEE countries”, Zbornik radova Ekonomskog fakulteta, Vol. 36 No. 1 pp. 309-336.
  25. 25. Hashemzadeh, N., Wilson, L., (2006), “The dynamics of current account and budget deficits in selected countries in Middle East and North Africa”, International Research Journal of Finance and Economics, Vol. 5, pp. 111-129.
  26. 26. Herrmann, S., Jochen, A., (2005), “Determinants of current account developments in the Central and East European EU member states – Consequences for the enlargement of the Euro Area”, Discussion Papers, Series 1: Economic Studies, No 32. Bundesbank.10.2139/ssrn.2785215
  27. 27. Jošić, H., Jošić, M. (2011), “Dvostruki deficit ili dvostruka divergencija u Hrvatskoj?” (Twin deficit or twin divergence in Croatia), Zbornik Ekonomskog fakulteta u Zagrebu, Vol. 9 No. 2, pp. 1-16.
  28. 28. Kaufmann, S., Scharler, J., Winckler, G. (2002), “The Austrian current account deficit: Driven by twin deficits or by intertemporal expenditure allocation?” Empirical Economics, Vol. 27, No. 3, pp. 529-542.10.1007/s001810100094
  29. 29. Keynes, M. J. (1936), The General Theory of Employment, Interest and Money (2007 ed.), Macmillan, London.
  30. 30. Khalid, A. M., Guan, T. W. (1999), “Causality tests of budget and current account deficits: Cross-country comparisons”, Empirical Economics, Springer, Vol. 24 No. 3, pp. 389-402.10.1007/s001810050062
  31. 31. Kim, K. H. (1995), “On the long-run determinants of the US trade balance: A comment”, Journal of Post Keynesian Economics, Vol. 17, No. 3, pp. 447-455.10.1080/01603477.1995.11490039
  32. 32. Kim, C. H., Kim, D. (2006), “Does Korea have twin deficits?”, Applied Economics Letters, Vol. 13 No. 10, pp. 675-680.10.1080/13504850500404910
  33. 33. Köhler, M. (2005), “Capital mobility and current account targeting in Central and Eastern European countries”, Centre for European Economic Research (ZEW), Discussion Paper, No. 05-51.
  34. 34. Krtalić, S., Grdović Gnip, A. (2011), “The Twin Deficit hypothesis: Empirical evidence from Croatia”, in Božina, L., Gonan Božac, M., Krtalić, S. (Eds.), Toward Global Governance, Juraj Dobrila University, Pula, pp. 245-273.
  35. 35. Kulkarni, K. G., Erickson, E. L. (2001), “Twin deficit revisited: Evidence from India, Pakistan and Mexico”, Journal of Applied Business Research, Vol. 17 No. 2, pp. 90-104.
  36. 36. Lau, E., Mansor, S. A., Puah, C-H. (2010), “Revival of the twin deficits in Asian crisisaffected countries”, Economic Issues, Vol. 15 No. 1, pp. 29-53.
  37. 37. Litsios I., Pilbeam, K. (2017), “An empirical analysis of the nexus between investment, fiscal balances and current account balances in Greece, Portugal and Spain”, Economic Modeling, Vol. 63, pp.143-152.10.1016/j.econmod.2017.02.003
  38. 38. Margani, P., Ricciuiti, R. (2004, “Equivalenza Ricardiana in economia aperta: Un'analysi empirica”, SIEP Working Paper 390, November 2004.
  39. 39. Marinheiro, C. F. (2008), “Ricardian equivalence, twin deficits, and the Feldstein–Horioka puzzle in Egypt”, Journal of Policy Modeling, Vol. 30 No. 6, pp. 1041-1056.10.1016/j.jpolmod.2007.12.001
  40. 40. Mundell, R. A. (1963), “Capital mobility and stabilization policy under fixed and flexible exchange rate”, Canadian Journal of Economics and Political Science, Vol. 29 No. 4, pp. 475-485.10.2307/139336
  41. 41. Nazier, H., Essam, M. (2012), “Empirical investigation of twin deficits hypothesis in Egypt (1992–2010),” Middle Eastern Finance and Economics Journal, Vol. 17, pp. 45-58.
  42. 42. Noveski, M. (2018), “Macroeconomic effects of the budget deficit in the Republic of Macedonia”, Croatian Review of Economic, Business and Social Statistics, Vol. 4 No. 2, pp. 5-14.10.2478/crebss-2018-0008
  43. 43. Rafiq, S. (2010), “Fiscal stance, the current account and the real exchange rate: Some empirical estimates from a time-varying framework”, Structural Change and Economic Dynamics, Vol. 21 No. 4, pp. 276-290.10.1016/j.strueco.2010.08.003
  44. 44. Rajasekar, T., Deo, M. (2016), “The relationship between fiscal deficit and trade deficit in India: An empirical enquiry using time series data”, The IUP Journal of Applied Economics, Vol. 15 No. 1, pp. 27-36.
  45. 45. Ratha, A. (2012), “Twin deficits or distant cousins? Evidence from India, South Asia”, Economic Journal, Vol. 13 No. 1, pp. 51-68.
  46. 46. Sadiku, L., Bexheti, A., Bexheti, G., Bilic, S., (2018), “Empirical analyses of the relationship between trade and budget deficit of FYR of Macedonia”, In The Economies of the Balkan and the Eastern European Countries in the changing World EBEEC 2018 Conference, 11-13 May, KnE Social Sciences, Warsaw, pp.1-15.
  47. 47. Sims, C. A. (1980), “Macroeconomics and reality”, Econometrica, Vol. 48, pp. 1-48.10.2307/1912017
  48. 48. Sobrino, C. R. (2013), “The Twin Deficit hypothesis and reverse causality: A short-run analysis of Peru”, Journal of Economic, Finance and Administrative Science, Vol. 18, No. 34, pp. 9-15.10.1016/S2077-1886(13)70018-0
  49. 49. Stojcevska, V., Miteski, M., (2016), “Assessment of the impact of fiscal policy on the current account–the Twin Deficit hypothesis in the case of Macedonian Economy”, Working Paper No. 2016-01, National Bank of the Republic of Macedonia.
  50. 50. Šuliková, V., Siničáková, M., Horváth, D. (2014), “Twin deficits in small open Baltic economies”, Panoeconomicus, Vol. 61 No. 2, pp. 227-239.10.2298/PAN1402227S
  51. 51. Tesic, A., Ilic, D., Djelic, A. T. (2014), “Consequences of fiscal deficit and pubic debt in financing the public sector”, Economics of Agriculture, Vol. 61 No. 1, pp. 177-194.
  52. 52. Tosun, M. U., Iyidogan, P. V., Telatar, E. (2014), “The twin deficits in selected Central and Eastern European economies: Bounds testing approach with causality analysis”, Romanian Journal of Economic Forecasting, Vol. XVII No. 2, pp. 141-152.
  53. 53. Turan, T., Karakas, M. (2018), “Asymetries in Twin Deficit hypotheses: Evidence from CEE countries”, Ekonomsky casopis, Vol. 66 No. 6, pp. 580-597.
  54. 54. Vedris, M., Rancic, N. (2010), “Dvostruki deficit u Hrvatskoj i njegove posljedice” (Double deficit in Croatia and its consequences), Ekonomija Economics, Vol. 17 No. 1, pp. 101-128.
  55. 55. Vyashnyak, O. (2000), Twin Deficit hypothesis: The Case of Ukraine. National University Kyiv, Mohyla Academy, Kyiv.
  56. 56. Zietz, J., Pemberton, D. K., (1990), “The budget deficits and trade deficits: A simultaneous equation model”, Southern Economic Journal, Vol. 57 No. 1, pp. 23-34.10.2307/1060475
DOI: https://doi.org/10.2478/bsrj-2020-0026 | Journal eISSN: 1847-9375 | Journal ISSN: 1847-8344
Language: English
Page range: 45 - 62
Submitted on: Jan 30, 2020
|
Accepted on: Jul 6, 2020
|
Published on: Dec 3, 2020
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2020 Vesna Bucevska, published by IRENET - Society for Advancing Innovation and Research in Economy
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.