Twin Deficits in Suriname: An Empirical Analysis
Peggy Tjon Kie Sim-Balker,
Natalie Piqué-Lont and
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This study investigates the relationship and directionality between the overall fiscal balance and the external current account balance of Suriname during 1970 - 2011. Both balances predominantly show deficits, however since 2006 the external current account balance shows surpluses due to the diversification of the mining sector as a result of booming international commodity prices. A vector error correction framework indicated the existence of a long-run relationship between these two variables. In the long run a bidirectional relation was found between the two balances, while in the short run no significant effect was encountered.
Keywords: Twin Deficits; Budget Balance; Current Account Balance (search for similar items in EconPapers)
JEL-codes: E62 F32 F41 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:215532
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