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Revisiting the twin deficits hypothesis: new evidence from nonlinear tests
This 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 fi...
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| Main Authors: | , |
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| Format: | Default Article |
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2019
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| Online Access: | https://hdl.handle.net/2134/11347142.v1 |
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| _version_ | 1823267602378522624 |
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| author | Ahmad Hassan Ahmad Olalekan B Aworinde |
| author_facet | Ahmad Hassan Ahmad Olalekan B Aworinde |
| author_sort | Ahmad Hassan Ahmad (1249758) |
| collection | Figshare |
| description | This 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. |
| format | Default Article |
| id | rr-article-11347142 |
| institution | Loughborough University |
| publishDate | 2019 |
| record_format | Figshare |
| spelling | rr-article-113471422019-12-24T00:00:00Z Revisiting the twin deficits hypothesis: new evidence from nonlinear tests Ahmad Hassan Ahmad (1249758) Olalekan B Aworinde (8106695) Fiscal deficits Current account deficits Nonlinear causality African countries <div>This 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.<br></div> 2019-12-24T00:00:00Z Text Journal contribution 2134/11347142.v1 https://figshare.com/articles/journal_contribution/Revisiting_the_twin_deficits_hypothesis_new_evidence_from_nonlinear_tests/11347142 CC BY-NC-ND 4.0 |
| spellingShingle | Fiscal deficits Current account deficits Nonlinear causality African countries Ahmad Hassan Ahmad Olalekan B Aworinde Revisiting the twin deficits hypothesis: new evidence from nonlinear tests |
| title | Revisiting the twin deficits hypothesis: new evidence from nonlinear tests |
| title_full | Revisiting the twin deficits hypothesis: new evidence from nonlinear tests |
| title_fullStr | Revisiting the twin deficits hypothesis: new evidence from nonlinear tests |
| title_full_unstemmed | Revisiting the twin deficits hypothesis: new evidence from nonlinear tests |
| title_short | Revisiting the twin deficits hypothesis: new evidence from nonlinear tests |
| title_sort | revisiting the twin deficits hypothesis: new evidence from nonlinear tests |
| topic | Fiscal deficits Current account deficits Nonlinear causality African countries |
| url | https://hdl.handle.net/2134/11347142.v1 |