The Current AccountBudget Deficits Link: in SubSaharan Africa Countries,Used

The Current AccountBudget Deficits Link: in SubSaharan Africa Countries,Used

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SKU: DADAX3845440562
Brand: LAP Lambert Academic Publishing
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Many economists have argued that prolonged fiscal expansions contribute to current account imbalances. The purpose of this work is to explore this phenomenon in the case of SubSaharan Africa countries during the period 1980 to 2007. In the framework of panel cointegration test, panel VAR Granger Causality analysis and a reducedform consumption function, this work tries to evaluate the validity of the conventional (Keynesian) view and the Ricardian Equivalence Hypothesis (the link between the twin deficits) in two groups of SubSaharan Africa countries: Oil importing and Oil exporting economies. The findings of this work would help policy makers and planners in managing deficits based on the direction of causation. It also triggers interested researchers in the area to inquire further about the issue.

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