The purpose of this study is to assess, from a Balance of Payment Constraint Growth (BPCG) theoretical perspective, current key challenges of developing countries that spring from two broad exogenous factors. These factors are: i) global shocks that affect the world economy, and ii) major...

This paper aims to analyze Keynesian well-known twin deficits hypothesis for a group of emerging countries using quarterly data between 1996 and 2006. Twin deficits hypothesis argues that there is a positive relationship between budget deficit and trade deficit. Several papers have analyzed this...