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https://doi.org/10.2478/bsrj-2020-0026

Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia

Vesna Bucevska ; Ss. Cyril and Methodius University in Skopje, Faculty of Economics-Skopje

Puni tekst: engleski, pdf (1 MB) str. 45-62 preuzimanja: 102* citiraj
APA 6th Edition
Bucevska, V. (2020). Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia. Business Systems Research, 11 (3), 45-62. https://doi.org/10.2478/bsrj-2020-0026
MLA 8th Edition
Bucevska, Vesna. "Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia." Business Systems Research, vol. 11, br. 3, 2020, str. 45-62. https://doi.org/10.2478/bsrj-2020-0026. Citirano 24.01.2021.
Chicago 17th Edition
Bucevska, Vesna. "Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia." Business Systems Research 11, br. 3 (2020): 45-62. https://doi.org/10.2478/bsrj-2020-0026
Harvard
Bucevska, V. (2020). 'Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia', Business Systems Research, 11(3), str. 45-62. https://doi.org/10.2478/bsrj-2020-0026
Vancouver
Bucevska V. Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia. Business Systems Research [Internet]. 2020 [pristupljeno 24.01.2021.];11(3):45-62. https://doi.org/10.2478/bsrj-2020-0026
IEEE
V. Bucevska, "Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia", Business Systems Research, vol.11, br. 3, str. 45-62, 2020. [Online]. https://doi.org/10.2478/bsrj-2020-0026

Sažetak
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 paper is to test empirically the validity of the twin deficit hypothesis in the Republic of North Macedonia. Methods/Approach: To achieve this objective, we used actual quarterly data on Macedonia’s budget and the current account deficit in the period from the first quarter of 2005 until the fourth quarter of 2017 and applied several econometrics methods: the Granger causality, a vector autoregressive (VAR) and a vector error correction model (VECM). Results: These findings point to the conclusion that efforts focused on improving the current account imbalances through fiscal policy will be inefficient in the short run. Conclusions: However, the existence of a long run relationship between the budget deficit and the current account deficit indicates the necessity of policy initiatives focused not only on reducing the budget deficit, but also on improving the external position of the country though export promotion

Ključne riječi
Twin deficit; Granger causality; VAR; VECM

Hrčak ID: 246459

URI
https://hrcak.srce.hr/246459

Posjeta: 177 *