Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study
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 caus...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
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School Of Economics University Of The South Pacific
2008
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/18565/ http://ir.unimas.my/id/eprint/18565/7/Causal%20Relationships%20between%20Current%20Account%20Imbalances%20%28abstract%29.pdf |
| _version_ | 1848838540089098240 |
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| author | Jayaraman, T.K Lau, Evan |
| author_facet | Jayaraman, T.K Lau, Evan |
| author_sort | Jayaraman, T.K |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-15T06:57:10Z |
| format | Working Paper |
| id | unimas-18565 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:57:10Z |
| publishDate | 2008 |
| publisher | School Of Economics University Of The South Pacific |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-185652020-08-12T03:36:29Z http://ir.unimas.my/id/eprint/18565/ Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study Jayaraman, T.K Lau, Evan HB Economic Theory 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. School Of Economics University Of The South Pacific 2008-08 Working Paper PeerReviewed text en http://ir.unimas.my/id/eprint/18565/7/Causal%20Relationships%20between%20Current%20Account%20Imbalances%20%28abstract%29.pdf 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] https://www.researchgate.net/publication/266098541 |
| spellingShingle | HB Economic Theory Jayaraman, T.K Lau, Evan Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study |
| title | Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study |
| title_full | Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study |
| title_fullStr | Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study |
| title_full_unstemmed | Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study |
| title_short | Causal Relationships between Current Account Imbalances and Budget Deficits in Pacific Island Countries: A Panel Cointegration Study |
| title_sort | causal relationships between current account imbalances and budget deficits in pacific island countries: a panel cointegration study |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/18565/ http://ir.unimas.my/id/eprint/18565/ http://ir.unimas.my/id/eprint/18565/7/Causal%20Relationships%20between%20Current%20Account%20Imbalances%20%28abstract%29.pdf |