The dynamic linkages of budget deficits and current account deficits nexus in EU countries: Bootstrap panel Granger causality test

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dc.contributor.authorBolat, Süleyman
dc.contributor.authorEmirmahmutoğlu, Furkan
dc.contributor.authorBelke, Murat
dc.date.accessioned13.07.201910:50:10
dc.date.accessioned2019-07-16T08:22:35Z
dc.date.available13.07.201910:50:10
dc.date.available2019-07-16T08:22:35Z
dc.date.issued2014
dc.departmentİktisadi ve İdari Bilimler Fakültesi
dc.description.abstractThe aim of this study is to test the relationship between budget deficit and current account deficit for EU-27 countries over the period 2002Q1-2013Q4 using different panel bootstrap causality test. For this analysis, we employed a method developed by Emirmahmutoglu and Kose (2011), which is based on the estimation of the panel model with bootstrapping critical values. We found strong empirical support for bidirectional causality between budget deficit and current account deficit for Belgium, Czech Republic, Denmark, Estonia, Germany, Italy, Spain, and UK, pointing as twin deficit hypothesis supported by Keynesian view. In addition the main results, we found that there is no relationship between budget deficit and current account deficit for 9 EU countries: Austria, France, Hungary, Ireland, Luxembourg, Netherlands, Poland, Portugal, and Romania, indicating support for the Ricardian Equivalence Hypothesis. © 2014, International Economic Society
dc.identifier.endpage26en_US
dc.identifier.issn1307-1637
dc.identifier.issue2en_US
dc.identifier.scopusqualityN/A
dc.identifier.startpage16en_US
dc.identifier.urihttps://hdl.handle.net/20.500.12451/2598
dc.identifier.volume8en_US
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherInternational Economic Society
dc.relation.ispartofInternational Journal of Economic Perspectives
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.subjectCross Section Dependency
dc.subjectGranger Causality
dc.subjectRicardian Equivalence Hypothesis
dc.subjectTwin Deficits
dc.titleThe dynamic linkages of budget deficits and current account deficits nexus in EU countries: Bootstrap panel Granger causality test
dc.typeArticle

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