Twin Deficit Revisited: Evidence From India, Pakistan And Mexico

Abstract

In recent years twin deficit has been a subject of investigation for several authors including Darrat (1988), Day (1998), Evans (1986

An Empirical Investigation of the Twin Deficit Hypothesis: Evidence from Sri Lanka

“…This study shows that twin deficits emerged in the 1980s, however less evidence for twin deficits in the 1990s.Using Granger non-causality approach, Kouassi et al (2002) find evidence for causality (either uni-directional or bi-directional) between twin deficits for some developing countries, but not for many developed countries. Kulkarni and Erickson (2001) investigate the twin deficits relationship in Mexico, India and Pakistan for the period of 1969 -1997. In the case of Mexico, there is no evidence of twin deficit relationship and causality running in either direction.…”

Twin Deficits Hypothesis and capital Mobility: The ASEAN-5 Perspective

“…On the other hand, Rahman and Mishra (1992) and Bachman (1992) all find evidence not in favor of the TDH. Kaufmann et al (2002) and Kulkarni and Erickson (2001) also find no connection between the two deficits in Austrian and Mexican data, respectively. While most of the studies mentioned above focus on the experience of the industrialised nations such as the G-7, little attention has been given to developing economies.…”

Testing the Validity of the Triplet Deficit Hypothesis for Turkey: Asymmetric Causality Analysis

“…Studies focusing on current account deficits and budget deficits have obtained a variety of results. Prover findings to traditional opinion have been obtained in numerous studies (Bernheim, 1988;Zietz and Pemberton, 1990;Biswas et al, 1992;Rosensweig and Tallman, 1993;Dibooglu, 1997;Egwaikhide, 1999;Khalid and Guan, 1999;Vamvoukas, 1999;Piersanti, 2000;Kulkarni and Erickson, 2001;Leachman and Francis, 2002;Fidrmuc, 2003;Kouassi et al, 2004;Pattichis, 2004;Corsetti and Müller, 2006;Salvatore, 2006;Mukhtar et al, 2007;Lau and Tang, 2009;Ito, 2009;Ganchev, 2010;Holmes, 2011;Iram et al, 2011;Zamanzadeh and Mehrara, 2011;Kalou and Paleologou, 2012;Trachanas and Katrakilidis, 2013). These studies have emphasized that budget deficits have a major impact on current account deficits.…”