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Brazil's twin deficits: An empirical examination

M. Faizul Islam

Atlantic Economic Journal, 1998, vol. 26, issue 2, 128 pages

Abstract: This paper examines empirically the causal relationship between budget deficits and trade deficits for Brazil from 1973:1Q through 1991:4Q. This relationship is investigated in the context of Granger's test of causality. The final prediction error criterion, as outlined by Hsiao [1981], is applied in determining the appropriate lag length of the two variables. Empirical results suggested the presence of bilateral causality between trade deficits and budget deficits. Copyright International Atlantic Economic Society 1998

Date: 1998
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:atlecj:v:26:y:1998:i:2:p:121-128

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DOI: 10.1007/BF02299354

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