The aim of this study is to assess the relationship between trade balance and public budget in the ASEAN countries. Using yearly data for the period between 1980 and 2012 in ten member states, a long-run relationship between current account balance and net lending emerge, both in ASEAN-6 and in ASEAN-10 countries. Granger causality analysis shows the predominance of the Ricardian equivalence in the South-Asia area. Moreover, mixture models produce four homogeneous clusters. Finally, convergence measures show interesting results.
Magazzino, C. (2020). The twin deficits in the ASEAN countries. EVOLUTIONARY AND INSTITUTIONAL ECONOMICS REVIEW [10.1007/s40844-020-00173-2].
The twin deficits in the ASEAN countries
Cosimo Magazzino
2020-01-01
Abstract
The aim of this study is to assess the relationship between trade balance and public budget in the ASEAN countries. Using yearly data for the period between 1980 and 2012 in ten member states, a long-run relationship between current account balance and net lending emerge, both in ASEAN-6 and in ASEAN-10 countries. Granger causality analysis shows the predominance of the Ricardian equivalence in the South-Asia area. Moreover, mixture models produce four homogeneous clusters. Finally, convergence measures show interesting results.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
