IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v10y2020i8p895-905id1986.html
   My bibliography  Save this article

A Non-Linear Autoreggresive Distributed Lag Analysis of the Triple Deficit Hypothesis in the Mena Region

Author

Listed:
  • Engy Raouf

Abstract

This paper focuses on assessing the validity of the triple deficit hypothesis in fourteen Middle Eastern and Northern African (MENA) countries between 1999 and 2018, using a non-linear autoregressive distributed lag (NARDL) model. Although many studies have used different methods to address this issue, they often conclude that the relationship between the budget deficit, the current account deficit, and the saving-investment gap is a symmetric relationship. This study claims that it is possible to shed new light on this issue by introducing non-linearity into studies on the relationship between these three deficits using the recently developed NARDL technique. This paper provides evidence for the existence of a non-linear relationship between the current account deficit, budget deficit, and saving-investment gap. It also shows that the triple deficit hypothesis is valid in the long-term. On the contrary, the relationship between external and internal deficits is negative in the short-term, which means that there is a triple divergence.

Suggested Citation

  • Engy Raouf, 2020. "A Non-Linear Autoreggresive Distributed Lag Analysis of the Triple Deficit Hypothesis in the Mena Region," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(8), pages 895-905.
    • Handle: RePEc:asi:aeafrj:v:10:y:2020:i:8:p:895-905:id:1986
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1986/3139
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/1986/7225
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samson Nonso Okafor & Chukwunonso Ekesiobi & Ogonna Ifebi & Stephen Kelechi Dimnwobi & Simplice A. Asongu, 2022. "Testing the triple deficit hypothesis for sub‐Saharan Africa: Implications for the African Continental Free Trade Area," African Development Review, African Development Bank, vol. 34(1), pages 142-153, March.
    2. Umaima Arif & Maryam Latif & Asma Arif, 2024. "Assessing the triple deficit hypothesis in G-7 and D-8 countries: an evidence from heterogeneous panel methods," International Journal of Economic Policy Studies, Springer, vol. 18(2), pages 497-527, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:10:y:2020:i:8:p:895-905:id:1986. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.