Kim, Chul-Hwan; Kim, Donggeun - In: Applied Economics Letters 13 (2006) 10, pp. 675-680
Using the modified Wald test suggested by Toda and Yamamoto (1995), the study examines whether higher budget deficits lead to greater current account deficits in Korea. This test allows one not only to examine the general validity of twin deficits hypotheses, but also to predict future Korean...