The Twin Deficits phenomenon: evidence from Italy
| Main Author: | COSIMO MAGAZZINO |
|---|---|
| Format: | Article Journal |
| Bahasa: | eng |
| Terbitan: |
, 2021
|
| Subjects: | |
| Online Access: |
https://www.researchgate.net/publication/235981835_The_Twin_Deficits_phenomenon_evidence_from_Italy |
Daftar Isi:
- Using time series techniques, this study explores the relationship between trade deficits and budget deficits in Italy in the period 1970-2010. Empirical findings show that current account balance and government budget are I(1) processes. Cointegration tests reject the presence of a long-run relationship between these variables. Finally, Granger-causality tests show a unidirectional flow from trade deficits to budget deficits, in line with Neo-classical view.