This paper seeks to investigate connection between current account deficits in the balance of payments and domestic budget deficits in Vanuatu. Based on the results of an empirical analysis of data covering a 23-year period (1983- 2005), this paper concludes that there is strong evidence to...

Resorting to panel data investigation, this study seeks to test the causal relationships between current account imbalances and budget deficits in Pacific island countries. The study findings are that current account imbalances and budget deficits are cointegrated, although there is no long run...