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Testing the twin-deficits hypothesis and feldstein-Horioka puzzle in Egypt during the period 1974-2018
Author
Source
The Scientific Journal of the Faculty of Economic Studies and Political Science
Issue
Vol. 2020, Issue 9 (31 Jan. 2020), pp.1-49, 49 p.
Publisher
Publication Date
2020-01-31
Country of Publication
Egypt
No. of Pages
49
Main Subjects
Economy and Commerce
Political Sciences
Topics
Abstract EN
The purpose of this paper is to test the twin-deficits hypothesis and the Feldstein-Horioka puzzle in Egypt during the period 1974-2018.
Feldstein and Horioka (1980) postulate that if there is perfect capital mobility, correlation between domestic investment and savings should be very low.
The results of the study rejected of the twin-deficits hypothesis, which is based on the existence of a positive relationship between the two deficits extending from the budget deficit to the current account deficit.
However, the results confirmed the opposite, which is the existence of a long-term relationship between the two deficits, in which the current account deficit creates a budget deficit.
As for the Feldstein-Horioka puzzle, the results confirmed the rejection of this puzzle in Egypt, as a large proportion of domestic investment was financed from foreign sources in light of the liberalization of foreign capital flows in Egypt.
American Psychological Association (APA)
Abd, Muhammad Sayyid. 2020. Testing the twin-deficits hypothesis and feldstein-Horioka puzzle in Egypt during the period 1974-2018. The Scientific Journal of the Faculty of Economic Studies and Political Science،Vol. 2020, no. 9, pp.1-49.
https://search.emarefa.net/detail/BIM-1260595
Modern Language Association (MLA)
Abd, Muhammad Sayyid. Testing the twin-deficits hypothesis and feldstein-Horioka puzzle in Egypt during the period 1974-2018. The Scientific Journal of the Faculty of Economic Studies and Political Science No. 9 (Jan. 2020), pp.1-49.
https://search.emarefa.net/detail/BIM-1260595
American Medical Association (AMA)
Abd, Muhammad Sayyid. Testing the twin-deficits hypothesis and feldstein-Horioka puzzle in Egypt during the period 1974-2018. The Scientific Journal of the Faculty of Economic Studies and Political Science. 2020. Vol. 2020, no. 9, pp.1-49.
https://search.emarefa.net/detail/BIM-1260595
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1260595