EconPapers    
Economics at your fingertips  
 

Testing the triple deficit hypothesis for sub‐Saharan Africa: Implications for the African Continental Free Trade Area

Samson Nonso Okafor, Chukwunonso Ekesiobi, Ogonna Ifebi, Stephen Kelechi Dimnwobi and Simplice Asongu

African Development Review, 2022, vol. 34, issue 1, 142-153

Abstract: Aware of the nature of deficits in the current account, fiscal account, and the financial account balances of the countries in the sub‐Saharan Africa (SSA) region, this inquiry assessed the relationship between these deficits and the implication of such relationship for the African Continental Free Trade Area (AfCFTA). To do this, the study adopted panel data analysis techniques using the pooled mean group‐autoregressive distributed lag (PMG‐ARDL) specifications to test for the triple deficit hypothesis (TDH) in the region. The findings of the study revealed the presence of the TDH in SSA where bidirectional causality exists between current account balance and budget balance, and between saving gap and current account balance, with a unidirectional causality running from budget balance to saving gap. The adoption of sound fiscal, monetary, and trade interventions in the region constitutes the major policy recommendations.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://doi.org/10.1111/1467-8268.12616

Related works:
Working Paper: Testing the Triple Deficit Hypothesis for Sub-Saharan Africa: Implications for the African Continental Free Trade Area (2021) Downloads
Working Paper: Testing the Triple Deficit Hypothesis for Sub-Saharan Africa: Implications for the African Continental Free Trade Area (2021) Downloads
Working Paper: Testing the Triple Deficit Hypothesis for Sub-Saharan Africa: Implications for the African Continental Free Trade Area (2021) Downloads
Working Paper: Testing the Triple Deficit Hypothesis for Sub-Saharan Africa: Implications for the African Continental Free Trade Area (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:afrdev:v:34:y:2022:i:1:p:142-153

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1017-6772

Access Statistics for this article

African Development Review is currently edited by John C. Anyanwu, Hassan Aly and Kupukile Mlambo

More articles in African Development Review from African Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-22
Handle: RePEc:bla:afrdev:v:34:y:2022:i:1:p:142-153