Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits
In this paper, the twin deficits hypothesis was examined using the panel data of nine SEACEN countries. Empirical results provide evidence to support the view that Asian budget deficit causes current account deficit directly as well as indirectly. From policy perspectives, the statistical analysis s...
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| Format: | Article |
| Language: | English |
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Euro-American Association of Economic Development
2006
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/7171/ http://ir.unimas.my/id/eprint/7171/1/TWIN%20DEFICITS%20HYPOTHESIS%20IN%20SEACEN%20COUNTRIES%20A%20PANEL%20DATA%20%2810%25%29.pdf |
| _version_ | 1848836071594393600 |
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| author | Evan, Lau Ahmad Zubaidi, Baharumshah |
| author_facet | Evan, Lau Ahmad Zubaidi, Baharumshah |
| author_sort | Evan, Lau |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | In this paper, the twin deficits hypothesis was examined using the panel data of nine SEACEN countries. Empirical results provide evidence to support the view that Asian budget deficit causes current account deficit directly as well as indirectly. From policy perspectives, the statistical analysis suggests that managing budget deficit offers scope for improvement in the current account deficit. However, this finding does not support the policy of manipulating the intermediate variables to reduce the twin deficits to a sustainable level since these variables appear to be endogenous in the system. |
| first_indexed | 2025-11-15T06:17:56Z |
| format | Article |
| id | unimas-7171 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:17:56Z |
| publishDate | 2006 |
| publisher | Euro-American Association of Economic Development |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-71712015-04-24T01:30:35Z http://ir.unimas.my/id/eprint/7171/ Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits Evan, Lau Ahmad Zubaidi, Baharumshah HC Economic History and Conditions In this paper, the twin deficits hypothesis was examined using the panel data of nine SEACEN countries. Empirical results provide evidence to support the view that Asian budget deficit causes current account deficit directly as well as indirectly. From policy perspectives, the statistical analysis suggests that managing budget deficit offers scope for improvement in the current account deficit. However, this finding does not support the policy of manipulating the intermediate variables to reduce the twin deficits to a sustainable level since these variables appear to be endogenous in the system. Euro-American Association of Economic Development 2006 Article PeerReviewed text en http://ir.unimas.my/id/eprint/7171/1/TWIN%20DEFICITS%20HYPOTHESIS%20IN%20SEACEN%20COUNTRIES%20A%20PANEL%20DATA%20%2810%25%29.pdf Evan, Lau and Ahmad Zubaidi, Baharumshah (2006) Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits. Applied Econometrics and International Development, 6 (2). pp. 213-226. ISSN 1578-4487 http://www.usc.es/economet/journals1/aeid/aeid6215.pdf |
| spellingShingle | HC Economic History and Conditions Evan, Lau Ahmad Zubaidi, Baharumshah Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits |
| title | Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits |
| title_full | Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits |
| title_fullStr | Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits |
| title_full_unstemmed | Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits |
| title_short | Twin deficits hypothesis in SEACEN countries: a panel data analysis of relationships between public budget and current account deficits |
| title_sort | twin deficits hypothesis in seacen countries: a panel data analysis of relationships between public budget and current account deficits |
| topic | HC Economic History and Conditions |
| url | http://ir.unimas.my/id/eprint/7171/ http://ir.unimas.my/id/eprint/7171/ http://ir.unimas.my/id/eprint/7171/1/TWIN%20DEFICITS%20HYPOTHESIS%20IN%20SEACEN%20COUNTRIES%20A%20PANEL%20DATA%20%2810%25%29.pdf |