This paper investigates the existence of possible causal linkages between the internal and external imbalances of the Greek economy, over the period 1960-2007, as well as the directions of the detected causal effects. Actually, it tests empirically the validity and rationale of the “twin...

The present study investigates the causality relationship between the external (trade and current account) balance and government budget balance for five countries of the Euro area's Mezzogiorno, namely Greece, Ireland, Italy, Portugal, and Spain. These countries, due to their weak economic and...

Background An econometric analysis of the twin deficit hypothesis is of special importance for the Republic of North Macedonia in view of its perspective membership in the European Union and from the point of view of its macroeconomic stability in the long run. Objectives The objective of this...

We study the relationship between the government budget balance and the current account balance for Portugal, using quarterly data from 1999 to 2019. On the one hand, the causality tests find a unidirectional relation running from the current account balance to the government budget balance. On...

The main objective of this paper is to examine the sustainability of the Turkish current account deficit after 2008 crisis while considering the structural changes caused by 1994 and 2001 crises. This study is based on Husted’s (1992) intertemporal model and examines the long-run relation...

This article provides new empirical evidence on the long-term relationship between the fiscal and current account imbalances, of five European economies under financial market pressure and insolvency; Portugal, Ireland, Italy, Greece and Spain. We attempt to re-evaluate the dynamic linkages...

In this article, we present preliminary results, analyzing the causality between external balance and fiscal variables (primary public balance, interest paid on debt and overall public balance) within the so-called twin deficits hypothesis for a set of six Eurozone countries – three core...

This study attempts to investigate the evidence of twin deficits hypothesis, that is, the simultaneous existence of fiscal and foreign trade account deficits in Bangladesh. In this regard this paper examines the causal relationship between budget deficit and trade deficit based on annual time...

In this study examines Twin Deficits Hypothesis over the period 1987:01–2007:03 in Turkey by using econometric Vector Autoregressive Model technique. The Public deficit indicators represented by public sector borrowing requirement and domestic dept percentage of gross domestic product. In...