Mossadak Anas : Twin deficits in Morocco: An empirical investigation (2013)
Twin deficits in Morocco: An empirical investigation
By: Mossadak Anas*
Abstract: This paper investigates the hypothesis of twin deficits in Morocco. According to this theoretical concept, the budget deficit is the main cause of the current account deficit. The Empirical results obtained from the impulse responses analysis of the VAR model and the Granger-causality test indicate the existence of an unidirectional causality going from the current account deficit to the fiscal deficit. This implies the existence of reverse causality i.e. the current account deterioration is the main cause of the fiscal deficit in Morocco
Keywords : Fiscal Policy; Budget Deficit; Current Account ;Twin deficits; VAR ; Impulse responses
To cite this article : Anas, M. (2013). Twin deficits in Morocco: An empirical investigation. International Journal of Business and Social Research, 3(7), 160-172.
By: Mossadak Anas*
Abstract: This paper investigates the hypothesis of twin deficits in Morocco. According to this theoretical concept, the budget deficit is the main cause of the current account deficit. The Empirical results obtained from the impulse responses analysis of the VAR model and the Granger-causality test indicate the existence of an unidirectional causality going from the current account deficit to the fiscal deficit. This implies the existence of reverse causality i.e. the current account deterioration is the main cause of the fiscal deficit in Morocco
Keywords : Fiscal Policy; Budget Deficit; Current Account ;Twin deficits; VAR ; Impulse responses
To cite this article : Anas, M. (2013). Twin deficits in Morocco: An empirical investigation. International Journal of Business and Social Research, 3(7), 160-172.
Link to download the article : http://thejournalofbusiness.org/
*Mossadak Anas, PhD researcher , department of economics-University Mohamed V, Rabat-Agdal, E-mail: anas.mossadak@gmail.com