On the Dynamics of the Greek Twin Deficits: Empirical evidence over the period 1960 – 2007

Panagiotis Pantelidis (), Emmanouil Trachanas (), Athanasios L. Athanasenas () and Constantinos Katrakilidis
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Panagiotis Pantelidis: Technological Education Institute of Serres, Department of Business Administration, Serres, Greece
Emmanouil Trachanas: Aristotle University of Thessaloniki, Department of Economics, Greece
Athanasios L. Athanasenas: Technological Education Institute of Serres, Department of Business Administration, Serres, Greece

International Journal of Business and Economic Sciences Applied Research (IJBESAR), 2009, vol. 2, issue 2, 9-32

Abstract: One of the most important open macroeconomic issues, during the current global economic recession, concerns the sustainability of persistent budget and trade deficits as well as possible interactions between them. These deficits are most crucial due to severe debt servicing costs, faced by today's economies despite their development level. This paper presents time series evidence over the period 1960 up to 2007, using data of the Greek Economy. Our results confirm 'weak' sustainability of both deficits and evidence in favor of the Keynesian rationale regarding the 'twin deficits hypothesis'

Keywords: Budget and Trade Deficits; Sustainability; Twin Deficits Hypothesis; Cointegration; Greek Economy (1960-2007) (search for similar items in EconPapers)
JEL-codes: C22 F32 F41 H62 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:tei:journl:v:2:y:2009:i:2:p:9-32

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