The effect of budget deficit on current account : case study (Palestinian territories 1996–2012)
Dissertant
Thesis advisor
al-Nimruti, Khalil Ahmad Yusuf
Comitee Members
Safi, Samir Khalid Husayn
Abu Jami, Nasim Hasan
University
Islamic University
Faculty
Faculty of Commerce
Department
Department of Economics and Political Science
University Country
Palestine (Gaza Strip)
Degree
Master
Degree Date
2014
English Abstract
-This study aimed to examine the effect of public budget deficit account on the current account in the Palestinian territories for the period (1996 - 2012) in order to identify the nature of the relationship between both accounts, and to study the impact of government revenues and expenses on the Palestinian current account.
The main objectives of the study are to clarify the type of relationship between the public budget and the current account, and determine the appropriate economic and fiscal policies should adopt to reduce the chronic deficit in the current account.
Through study the nature and components of government expenditures and revenues.
In addition, to highlight the role of different Israeli policies have contributed to influence in the nature of all of the public budget and the current account.
Moreover, to show the negative role-played by the division between the West Bank and the Gaza Strip.
This study has reviewed many previous studies on this subject.
Moreover, the analytical descriptive approach adopted to analysis the components of the public budget and current account.
Then it used statistical analysis approach by using econometric models to illustrate the impact of public budget deficit on current account in the Palestinian territories.
This is after checking the stationary of time series by adopting unit root test using Augmented Dickey Fuller test.
After that, it was ensured that all economic variables included in the models have cointegration relationship at long-term by using Johansen cointegration method.
Findings of the study confirm the positive relationship between the public budget deficit and the current account in the Palestinian territories.
Whereas, the increase in the public budget deficit by one million U.S.
dollars, leading to increase a current account deficit of 3.08 million U.S.
dollars.
In addition the deficit in the trade balance increased by 465.3 thousand U.S.
dollars, when the other independent variables in the model remain constant, such as government and private investment.
The study also confirmed the important positive role played by government investment in reducing the current account deficit.
While the private investment shows negative impact on current account.
This was because of the nature of private investment, which depends highly on consumer imports.
The study provided a set of recommendations concerning government institutions, private sector, and academic institutions.
It should rationalize the public current expenditures, and reallocation larger part of public spending capital spending.
In addition to support and enhance the domestic productive base and to direct the private investment into productive projects that lead to imports substitution and then to increase exports.
Main Subjects
Topics
No. of Pages
181
Table of Contents
Table of contents.
Abstract.
Abstract in Arabic.
Chapter One : Study framework.
Chapter Two : Twin deficit hypothesis theoretical study.
Chapter Three : Public budget in the Palestinian territories.
Chapter Four : Palestinian current account.
Chapter Five : Econometrics analysis for the effect of public budget deficit on current account.
Chapter Six : Conclusions and recommendations.
References.
American Psychological Association (APA)
Saidam, Ahmad Mahmud Musa. (2014). The effect of budget deficit on current account : case study (Palestinian territories 1996–2012). (Master's theses Theses and Dissertations Master). Islamic University, Palestine (Gaza Strip)
https://search.emarefa.net/detail/BIM-534753
Modern Language Association (MLA)
Saidam, Ahmad Mahmud Musa. The effect of budget deficit on current account : case study (Palestinian territories 1996–2012). (Master's theses Theses and Dissertations Master). Islamic University. (2014).
https://search.emarefa.net/detail/BIM-534753
American Medical Association (AMA)
Saidam, Ahmad Mahmud Musa. (2014). The effect of budget deficit on current account : case study (Palestinian territories 1996–2012). (Master's theses Theses and Dissertations Master). Islamic University, Palestine (Gaza Strip)
https://search.emarefa.net/detail/BIM-534753
Language
English
Data Type
Arab Theses
Record ID
BIM-534753