Revival of the twin deficits in Asian crisis-affected countries
This paper revisits the twin deficits argument in the Asian crisis-affected countries. We also include data from the 1997 crisis to examine the disparities in the empirical regularities governing the two deficits in these countries. Empirical results suggest that causality runs from budget deficit t...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
M.E. Sharpe Inc.
2010
|
| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/7235/ http://ir.unimas.my/id/eprint/7235/1/Revival%20of%20the%20Twin%20Deficits%20in%20Asian%20Crisis%20affected%20countries%2810%25%29.pdf |
| _version_ | 1848836083098320896 |
|---|---|
| author | Lau, Evan Shazali Abu, Mansor Puah, Chin-Hong |
| author_facet | Lau, Evan Shazali Abu, Mansor Puah, Chin-Hong |
| author_sort | Lau, Evan |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper revisits the twin deficits argument in the Asian crisis-affected countries. We also include data from the 1997 crisis to examine the disparities in the empirical regularities governing the two deficits in these countries. Empirical results suggest that causality runs from budget deficit to current account deficit for Malaysia, the Philippines (pre-crisis) and Thailand, which fits well with the Keynesian view. For Indonesia and Korea the causality runs in the opposite direction while a bi-directional causality exists for the Philippines in the post-crisis era. As these countries are at a crossroad in the aftermath of the 1997 crisis, managing these deficits are indeed important policy options in promoting macroeconomic stability and sustainability in the region. |
| first_indexed | 2025-11-15T06:18:07Z |
| format | Article |
| id | unimas-7235 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:18:07Z |
| publishDate | 2010 |
| publisher | M.E. Sharpe Inc. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-72352016-04-14T07:02:30Z http://ir.unimas.my/id/eprint/7235/ Revival of the twin deficits in Asian crisis-affected countries Lau, Evan Shazali Abu, Mansor Puah, Chin-Hong HC Economic History and Conditions JZ International relations This paper revisits the twin deficits argument in the Asian crisis-affected countries. We also include data from the 1997 crisis to examine the disparities in the empirical regularities governing the two deficits in these countries. Empirical results suggest that causality runs from budget deficit to current account deficit for Malaysia, the Philippines (pre-crisis) and Thailand, which fits well with the Keynesian view. For Indonesia and Korea the causality runs in the opposite direction while a bi-directional causality exists for the Philippines in the post-crisis era. As these countries are at a crossroad in the aftermath of the 1997 crisis, managing these deficits are indeed important policy options in promoting macroeconomic stability and sustainability in the region. M.E. Sharpe Inc. 2010 Article PeerReviewed text en http://ir.unimas.my/id/eprint/7235/1/Revival%20of%20the%20Twin%20Deficits%20in%20Asian%20Crisis%20affected%20countries%2810%25%29.pdf Lau, Evan and Shazali Abu, Mansor and Puah, Chin-Hong (2010) Revival of the twin deficits in Asian crisis-affected countries. Economic Issues, 15 (1). pp. 29-53. ISSN 1363-7029 http://www.economicissues.org.uk/Files/110Lau.pdf |
| spellingShingle | HC Economic History and Conditions JZ International relations Lau, Evan Shazali Abu, Mansor Puah, Chin-Hong Revival of the twin deficits in Asian crisis-affected countries |
| title | Revival of the twin deficits in Asian crisis-affected countries |
| title_full | Revival of the twin deficits in Asian crisis-affected countries |
| title_fullStr | Revival of the twin deficits in Asian crisis-affected countries |
| title_full_unstemmed | Revival of the twin deficits in Asian crisis-affected countries |
| title_short | Revival of the twin deficits in Asian crisis-affected countries |
| title_sort | revival of the twin deficits in asian crisis-affected countries |
| topic | HC Economic History and Conditions JZ International relations |
| url | http://ir.unimas.my/id/eprint/7235/ http://ir.unimas.my/id/eprint/7235/ http://ir.unimas.my/id/eprint/7235/1/Revival%20of%20the%20Twin%20Deficits%20in%20Asian%20Crisis%20affected%20countries%2810%25%29.pdf |