Budget deficits and inflation in thirteen Asian developing countries
In this study we attempt to determine the long-run relationship between budget deficit and inflation in thirteen Asian developing countries, namely; Indonesia, Malaysia, the Philippines, Myanmar, Singapore, Thailand, India, South Korea, Pakistan, Sri Lanka, Taiwan, Nepal and Bangladesh. Using annual...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Center for Promoting Ideas
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/22789/ http://psasir.upm.edu.my/id/eprint/22789/1/Budget%20deficits%20and%20inflation%20in%20thirteen%20Asian%20developing%20countries.pdf |
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| author | Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom |
| author_facet | Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom |
| author_sort | Habibullah, Muzafar Shah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | In this study we attempt to determine the long-run relationship between budget deficit and inflation in thirteen Asian developing countries, namely; Indonesia, Malaysia, the Philippines, Myanmar, Singapore, Thailand, India, South Korea, Pakistan, Sri Lanka, Taiwan, Nepal and Bangladesh. Using annual data for the period 1950-1999 our Granger causality within the error-correction model (ECM) framework suggest that all variables involved (budget deficits, money supply and inflation) are integrated of order one. Our ECM model estimates indicate the existence of a long-run relationship between inflation and budget deficits. Thus, we conclude that budget deficits are inflationary in Asian developing countries. |
| first_indexed | 2025-11-15T08:33:12Z |
| format | Article |
| id | upm-22789 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:33:12Z |
| publishDate | 2011 |
| publisher | Center for Promoting Ideas |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-227892015-09-14T01:02:41Z http://psasir.upm.edu.my/id/eprint/22789/ Budget deficits and inflation in thirteen Asian developing countries Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom In this study we attempt to determine the long-run relationship between budget deficit and inflation in thirteen Asian developing countries, namely; Indonesia, Malaysia, the Philippines, Myanmar, Singapore, Thailand, India, South Korea, Pakistan, Sri Lanka, Taiwan, Nepal and Bangladesh. Using annual data for the period 1950-1999 our Granger causality within the error-correction model (ECM) framework suggest that all variables involved (budget deficits, money supply and inflation) are integrated of order one. Our ECM model estimates indicate the existence of a long-run relationship between inflation and budget deficits. Thus, we conclude that budget deficits are inflationary in Asian developing countries. Center for Promoting Ideas 2011-05 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22789/1/Budget%20deficits%20and%20inflation%20in%20thirteen%20Asian%20developing%20countries.pdf Habibullah, Muzafar Shah and Chee, Kok Cheah and Abdul Hamid, Baharom (2011) Budget deficits and inflation in thirteen Asian developing countries. International Journal of Business and Social Science, 2 (9). pp. 192-204. ISSN 2219-1933; ESSN: 2219-6021 http://ijbssnet.com/journal/index/376 |
| spellingShingle | Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom Budget deficits and inflation in thirteen Asian developing countries |
| title | Budget deficits and inflation in thirteen Asian developing countries |
| title_full | Budget deficits and inflation in thirteen Asian developing countries |
| title_fullStr | Budget deficits and inflation in thirteen Asian developing countries |
| title_full_unstemmed | Budget deficits and inflation in thirteen Asian developing countries |
| title_short | Budget deficits and inflation in thirteen Asian developing countries |
| title_sort | budget deficits and inflation in thirteen asian developing countries |
| url | http://psasir.upm.edu.my/id/eprint/22789/ http://psasir.upm.edu.my/id/eprint/22789/ http://psasir.upm.edu.my/id/eprint/22789/1/Budget%20deficits%20and%20inflation%20in%20thirteen%20Asian%20developing%20countries.pdf |