The effects of government budget deficit on current account : new evidence from selected countries of the MENA region (1994-2013)
Other Title(s)
العلاقة بين العجز في الموازنة و الحساب الجاري : أدلة جديدة من دول مختارة من الشرق الأوسط و شمال أفريقيا (1994-2013)
Dissertant
Thesis advisor
Comitee Members
University
Birzeit University
Faculty
Faculty of Business and Economics
Department
Department of Economics
University Country
Palestine (West Bank)
Degree
Master
Degree Date
2016
English Abstract
This thesis investigates the relationship between government budget and the current account for a group of small open-developing economies selected from the Middle East and North Africa.
These countries are divided into two categories, including one the one hand, six oil exporting countries and on the other, eight non-oil exporting countries, in the period from 1994 to 2013. Specifically, this thesis tests the view of Ricardian infinite horizon illustrative agent model in which lower public savings are met by equal increases in private savings, and as a result the current account does not respond to the changes in government spending. In contrast, a Keynesian conventional viewpoint, in which there is a fall in public savings, has a conflicting effect on the current account.
New evidence from a panel data analysis supports the conventional approach of a positive relationship between government budget and current account in oil countries.
However, our results don’t support the Ricardian or Keynesian views for non-oil countries; our estimates support “Twin divergence” rather than “twin deficits” in case of non -oil exporting countries. Our estimates show that a rise by one US billion dollars of the government budget deficit increases the current account to deteriorate by 0.72 US billion dollars in the case of oil exporting countries.
On the other hand, the rise by one US billion dollars of the government budget deficit improves the current account by 0.29 US billion dollars in case of non-oil exporting countries
Main Subjects
No. of Pages
47
Table of Contents
Table of contents.
Abstract.
Abstract in Arabic.
Chapter One : Introductio.
Chapter Two : Theoretical framework.
Chapter Three : Literature review.
Chapter Four : The model and data description.
Chapter Five : Methodology.
Chapter Six : Empirical results from oil exporting countries of the MENA region.
Chapter Seven : Empirical results from non-oil exporting countries of MENA region.
Chapter Eight : Conclusions and recommendations.
References.
American Psychological Association (APA)
Khalayilah, Suzan Ali. (2016). The effects of government budget deficit on current account : new evidence from selected countries of the MENA region (1994-2013). (Master's theses Theses and Dissertations Master). Birzeit University, Palestine (West Bank)
https://search.emarefa.net/detail/BIM-728450
Modern Language Association (MLA)
Khalayilah, Suzan Ali. The effects of government budget deficit on current account : new evidence from selected countries of the MENA region (1994-2013). (Master's theses Theses and Dissertations Master). Birzeit University. (2016).
https://search.emarefa.net/detail/BIM-728450
American Medical Association (AMA)
Khalayilah, Suzan Ali. (2016). The effects of government budget deficit on current account : new evidence from selected countries of the MENA region (1994-2013). (Master's theses Theses and Dissertations Master). Birzeit University, Palestine (West Bank)
https://search.emarefa.net/detail/BIM-728450
Language
English
Data Type
Arab Theses
Record ID
BIM-728450
