Structural breaks and the twin deficits hypothesis: Evidence from East Asian countries
Ahmad Zubaidi Baharumshah () and
Evan Lau ()
Economics Bulletin, 2009, vol. 29, issue 4, 2517-2524
In this paper, we examine the relevance of the twin deficits hypothesis (TDH) for selected East Asian countries. Empirical results reveal that the admission of regime shifts substantially influences the conclusion that TDH exists in four out of the seven countries that we have investigated. It seems that TDH are less likely to be evident in countries with highly developed financial systems (Singapore and Japan).
Keywords: Current account; Budget deficit; Twin deficits hypothesis; Regime shift; Asian countries (search for similar items in EconPapers)
JEL-codes: F4 C3 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-09-00562
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Series data maintained by John P. Conley ().