ECTAP
 
HomeDespre ECTAEventsPolitica editorialaTrimite un articolParteneri / link-uri utileArchiveAbonamentContact
 

ISSN 1841-8678   (print)
ISSN 1844-0029   (online)

News

Archive ECTAP

Note: for the period 1994-2003 the archive of the magazine will not be available online

Supplements ECTAP

If you cannot open the pdf file you need Adobe Reader.
download Adobe Reader

Creative Commons License

Theoretical and Applied Economics
No. 1 / 2016 (606), Spring

How budget deficit and current account deficit are interrelated in Indian economy

U.J. BANDAY
Jamia Millia Islamia University Delhi, India
Ranjan ANEJA
Central University of Haryana, India

Abstract. The development in Indian economy brings the question of validity of the twin deficit hypothesis. The main aim of the article is theoretical and empirical analysis of the causal relationship between the budget deficit and the current account deficit in the Indian economy from the period 1990-2013. A co-integration test suggests that both the variables have a long run association between each other and move with each other for a long period of time. The Granger causality test clearly finds the existence of bidirectional relationship between the twin deficit variables. The results indicate that twin deficit hypothesis exists in India as opposed by direction between budget deficit and current account deficit. The study finds the government need to find adequate monetary and fiscal policy for policy variables.

Keywords: current account deficit, budget deficit, co-integration, granger causality.

Download the full article:  

Contents

Open acces

ECTAP

Search

BOOKS

The Economicity. The Epistemic Landscape, Marin Dinu, 2016

Partners


ISSN 1841-8678 (ediția print) / ISSN 1844-0029 (ediția online)
© Copyright Asociația Generală a Economiștilor din România (AGER) / General Association of Economists From Romania  (GAER)
Redacția: 010702, București, Calea Griviței nr. 21, sector 1, E-mail: economia.ta@edeconomica.com

© 2006-2019 AGER