Twin Deficits Phenomenon in the West African Economic and Monetary Union Countries: Panel Data Analysis

Kouassi Yeboua

Working Papers from African Economic Research Consortium

Abstract: For a long time, the West African Economic and Monetary Union (WAEMU) countries have been experiencing persistently high budget and current deficits. This study was undertaken to empirically test the "Twin Deficits Hypothesis" in these countries. The analysis was conducted within the framework of the Panel Vector autoregressive (VAR) approach over the period 1975a-2013. In contrast to the conventional view which claims a one-way relationship between budget and current account deficits, the results show that budget deficits lead to a deterioration in the current account balance, and vice versa (bilateral relationship). We also found that budget deficits have an impact on current account balance mainly through imports

Date: 2020-04-27
Note: African Economic Research Consortium
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publication.aercafricalibrary.org/handle/123456789/522 (application/pdf)

Related works:
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:aer:wpaper:732b4ef7-fbf8-4564-a64e-b2c7bc11d4f4

Access Statistics for this paper

More papers in Working Papers from African Economic Research Consortium Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Njiru ().