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The twin deficits in the ASEAN countries

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  • Cosimo Magazzino

    (Università degli Studi Roma Tre Facoltà di Scienze Politiche)

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.

Suggested Citation

  • Cosimo Magazzino, 2021. "The twin deficits in the ASEAN countries," Evolutionary and Institutional Economics Review, Springer, vol. 18(1), pages 227-248, April.
    • Handle: RePEc:spr:eaiere:v:18:y:2021:i:1:d:10.1007_s40844-020-00173-2
    DOI: 10.1007/s40844-020-00173-2
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    More about this item

    Keywords

    ASEAN; South-East Asia; Twin deficits; Ricardian equivalence; Panel;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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