%0 Journal Article %1 noauthororeditor %A ur Rehman, Dr. Ateeq %A Saeed, Sumaira %D 2017 %J Economics, Commerce and Trade Management: An InternationalJournal (ECTIJ) %K Causality Function Impulse Pakistan Response Ttwin co deficits integration %N 1 %P 45-57 %T VALIDITY OF TWIN DEFICIT HYPOTHESIS IN CASE OF PAKISTAN: USING DIFFERENT COINTEGRATION TECHNIQUES %U https://airccse.com/ectij/papers/1117ectij04.pdf %V 1 %X Pakistan is facing high rates of budget and current account deficits. The validity of the twin deficits issue is examined in the context of Pakistan economy using annual time series data for the period 1972 to 2015. The three different econometric techniques are used to check the robustness and comparison of results for Twin Deficit hypothesis. Impulse response function is also imposed to check the policy impact of variables. Results through all co-integration techniques have given a support of Twin Deficit hypothesis and one way causality from current account deficit to the budget deficit has been proved by three approaches. Finally this empirical study confirms the validity of twin deficits hypothesis and concludes that trade deficit is one of the determinants of budget deficit and can cause it in case of Pakistan.

@article{noauthororeditor, abstract = {Pakistan is facing high rates of budget and current account deficits. The validity of the twin deficits issue is examined in the context of Pakistan economy using annual time series data for the period 1972 to 2015. The three different econometric techniques are used to check the robustness and comparison of results for Twin Deficit hypothesis. Impulse response function is also imposed to check the policy impact of variables. Results through all co-integration techniques have given a support of Twin Deficit hypothesis and one way causality from current account deficit to the budget deficit has been proved by three approaches. Finally this empirical study confirms the validity of twin deficits hypothesis and concludes that trade deficit is one of the determinants of budget deficit and can cause it in case of Pakistan. }, added-at = {2018-10-05T09:12:42.000+0200}, author = {ur Rehman, Dr. Ateeq and Saeed, Sumaira}, biburl = {https://www.bibsonomy.org/bibtex/2aed89d79923e8ea594fb9fd0da093fde/ectij}, interhash = {c01bc3f294b55e815b9b0047e604106b}, intrahash = {aed89d79923e8ea594fb9fd0da093fde}, journal = {Economics, Commerce and Trade Management: An InternationalJournal (ECTIJ) }, keywords = {Causality Function Impulse Pakistan Response Ttwin co deficits integration}, language = {English}, number = 1, pages = {45-57}, timestamp = {2018-10-05T09:12:42.000+0200}, title = {VALIDITY OF TWIN DEFICIT HYPOTHESIS IN CASE OF PAKISTAN: USING DIFFERENT COINTEGRATION TECHNIQUES}, url = {https://airccse.com/ectij/papers/1117ectij04.pdf}, volume = 1, year = 2017 }