scholarly journals Timothy Davin S_130218181

2021 ◽  
Author(s):  
Timothy Davin S
Keyword(s):  
Current Account ◽  
Budget Deficit ◽  
Positive Impact ◽  
State Budget ◽  
Economic Problems ◽  
Current Account Deficits ◽  
Current Asset

Indonesia is a country who relies their income on state budget deficit and current asset deficit.This also has a positive impact on people who involved in tourism activities, in addition to earning income for themselves, people who involved in tourism activities also participate in overcoming economic problems by increasing business fields, reducing current account deficits, and other.

scholarly journals Do The Federal Deficits Matter?

2011 ◽  
Vol 7 (1) ◽  
Author(s):  
Sayeed Payesteh
Keyword(s):  
Current Account ◽  
Single Equation ◽  
Equivalence Theorem ◽  
Simultaneous Equations ◽  
Ricardian Equivalence ◽  
Budget Deficits ◽  
Macroeconomic Variables ◽  
Economic Problems ◽  
Real Effects ◽  
Current Account Deficits

The sharp and sustained increases in the budget and current-account deficits have once again raised a great deal of concern among many economists on the reemergence of the twin deficits of the1980s and their impacts upon macroeconomic variables. In view of majority of economists, these developments will be creating economic problems such as high real rates of interest, low savings, stagnant economic growth, large and persistent current account deficits, and probably a higher inflation. All economists, however, do not share this view. Those associated with the writings of Robert Barro, argue the Ricardian Equivalence Theorem that budget deficits do not matter and they have no real effects on the economy. The empirical evidence on this issue has been rather inconclusive. In contrast to the previous studies that have used single equation, I use a balance of payment model to investigate simultaneously the impacts of budget deficits on a number of macroeconomic variables using a system of simultaneous equations.

scholarly journals Analyzing the Relationship between Budget Deficit, Current Account Deficit, and Government Debt Sustainability

2019 ◽  
Vol 8 (1) ◽  
pp. 20-31
Author(s):  
Michael Reed ◽  
Reza Najarzadeh ◽  
Seyedeh Zohreh Sadati
Keyword(s):  
Current Account ◽  
Budget Deficit ◽  
Current Account Deficit ◽  
Government Debt ◽  
State Budget ◽  
Debt Sustainability ◽  
Stable Relationship ◽  
The Government ◽  
Dynamic Relationships ◽  
Oil Revenues

The main purpose of this study is to determine the dynamic relationships between budget deficit, current account deficit, and government debt sustainability during 1974-2015 in the Iranian economy. We used a VAR model with Impulse Functions and Variance Decomposition in our dynamic analysis. The results show that there is a long-term stable relationship among the variables of the model suggesting that to improve the government debt sustainability it has to reduce the budget deficit and current account deficit. Since Iran's dependence on oil revenues is the underlying cause of the dependence of the variables on each other, the government needs to reduce the dependence of the current account and the state budget on oil revenues to reduce both types of deficits and government debt sustainability.

IMPACT OF GOVERNMENT DEBT ON FINANCIAL SECURITY OF UKRAINE

2017 ◽  
Author(s):  
Olena Pikaliuk ◽  
◽  
Dmitry Kovalenko ◽  
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Positive Impact ◽  
The State ◽  
Financial Security ◽  
State Budget ◽  
The Public ◽  
Debt Security ◽  
The Stability ◽  
The Impact

One of the main criteria for economic development is the size of the public debt and its dynamics. The article considers the impact of public debt on the financial security of Ukraine. The views of scientists on the essence of public debt and financial security of the state are substantiated. An analysis of the dynamics and structure of public debt of Ukraine for 2014-2019. It is proved that one of the main criteria for economic development is the size of public debt and its dynamics. State budget deficit, attracting and using loans to cover it have led to the formation and significant growth of public debt in Ukraine. The volume of public debt indicates an increase in the debt security of the state, which is a component of financial security. Therefore, the issue of the impact of public debt on the financial security of Ukraine is becoming increasingly relevant. The constant growth and large amounts of debt make it necessary to study it, which will have a positive impact on economic processes that will ensure the stability of the financial system and enhance its security.

Relationship between Budget Deficit and Economic Growth: Evidence from Ethiopia

2021 ◽  
Vol 2 (2) ◽  
pp. 10-15
Author(s):  
Desalegn Emana
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Budget Deficit ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
Long Run

This study examined the relationship between budget deficit and economic growth in Ethiopia using time series data for the period 1991 to 2019 by applying the ARDL bounds testing approach. The empirical results indicate that budget deficit and economic growth in Ethiopia have a negative relationship in the long run, and have a weak positive association in the short run. In line with this, in the long run, a one percent increase in the budget deficit causes a 1.43 percent decline in the economic growth of the country. This result is consistent with the neoclassical view which says budget deficits are bad for economic growth during stimulating periods. Moreover, in the long run, the variables trade openness and inflation have a positive impact on Ethiopian economic growth, and on the other hand, the economic growth of Ethiopia is negatively affected by the nominal exchange rate in the long run. Apart from this, in the long run, gross capital formation and lending interest rates have no significant impact on the economic growth of the country. Therefore, the study recommends the government should manage its expenditure and mobilize the resources to generate more revenue to address the negative impact of the budget deficit on economic growth.

Crude oil trade and current account deficits

2015 ◽  
Vol 50 ◽  
pp. 70-79 ◽  
Author(s):  
Hillard G. Huntington
Keyword(s):  
Crude Oil ◽  
Current Account ◽  
Current Account Deficits

scholarly journals The Relationship between Current Account Deficits and Growth in Montenegro: ARDL Bounds Testing Approach

2018 ◽  
Vol 7 (3) ◽  
pp. 5-24 ◽  
Author(s):  
Mustafa Özer ◽  
Jovana Žugić ◽  
Sonja Tomaš-Miskin
Keyword(s):  
Growth Rate ◽  
Current Account ◽  
Current Account Deficit ◽  
Gdp Growth ◽  
Bounds Testing ◽  
Current Account Deficits ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run ◽  
The Relationship

Abstract In this study, we investigate the relationship between current account deficits and growth in Montenegro by applying the bounds testing (ARDL) approach to co-integration for the period from the third quarter of 2011 to the last quarter of 2016. The bounds tests suggest that the variables of interest are bound together in the long run when growth is the dependent variable. The results also confirm a bidirectional long run and short run causal relationship between current account deficits and growth. The short run results mostly indicate a negative relationship between changes in the current account deficit GDP ratio and the GDP growth rate. This means that any increase of the value of independent variable (current account deficit GDP ratio) will result in decrease of the rate of GDP growth and vice versa. The long-run effect of the current account deficit to GDP ratio on GDP growth is positive. The constant (β0) is positive but also the (β1), meaning that with the increase of CAD GDP ratio of 1 measuring unit, the GDP growth rate would grow by 0,5459. This positive and tight correlation could be explained by overlapping structure of the constituents of CAD and the drivers of GDP growth (such as tourism, energy sector, agriculture etc.). The results offer new perspectives and insights for new policy aiming for sustainable economic growth of Montenegro.

scholarly journals Are Government Budget Deficits Inflationary? Evidence from Pakistan

1994 ◽  
Vol 33 (4II) ◽  
pp. 955-967 ◽  
Author(s):  
Tayyeb Shabbir ◽  
Ayaz Ahmed
Keyword(s):  
Budget Deficit ◽  
Structural Adjustment ◽  
Oil Price ◽  
Optimal Size ◽  
Budget Deficits ◽  
Government Budget ◽  
Economic Role ◽  
Current Account Deficits ◽  
Structural Adjustment Programmes

In academia as well as policy-making institutions, there has been a long standing interest in analysing the phenomenon of inflation. Amongst the possible determinants of inflation, budget deficits may be one whose importance might have grown since the oil price hikes of 1973-74 and in 1979. For many a developing countries these increases in oil price have been responsible for the massive current account deficits as well as rapidly increasing domestic budget deficits of the last decade or so. During the 1980s, the budget deficit for Pakistan also grew rapidly reaching a record high of 8.6 percent of the G D P in 1987-88. Lately in the backdrop of the recent structural adjustment programmes, there has been much interest in determining the optimal size and the macro economic role of the budget deficits. However, despite its growing importance, the effects of budget deficits are not well understood.

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