International Journal of Social Science & Economic Research
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Title:
AN EMPIRICAL INVESTIGATING OF BUDGET AND CURRENT ACCOUNT DEFICIT: THE CASE OF USA

Authors:
Dr. Erdal Arslan

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Dr. Erdal Arslan
Asst. Professor, Department of Economics, Selcuk University, Konya, Turkey

MLA 8
Arslan, Dr. Erdal. "AN EMPIRICAL INVESTIGATING OF BUDGET AND CURRENT ACCOUNT DEFICIT: THE CASE OF USA." Int. j. of Social Science and Economic Research, vol. 4, no. 2, Feb. 2019, pp. 1528-1537, ijsser.org/more2019.php?id=112. Accessed Feb. 2019.
APA
Arslan, D. (2019, February). AN EMPIRICAL INVESTIGATING OF BUDGET AND CURRENT ACCOUNT DEFICIT: THE CASE OF USA. Int. j. of Social Science and Economic Research, 4(2), 1528-1537. Retrieved from ijsser.org/more2019.php?id=112
Chicago
Arslan, D. (2019, February). AN EMPIRICAL INVESTIGATING OF BUDGET AND CURRENT ACCOUNT DEFICIT: THE CASE OF USA. Int. j. of Social Science and Economic Research, 4(2), 1528-1537. Retrieved from ijsser.org/more2019.php?id=112

References
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Abstract:
This study aimed to examine the causal relationship between the current account deficit and the federal budget deficit in the US economy during the period 1980-2017. Several tests have been used to examine the performance of the model, most notably ones are the unit root tests, Johanson's co-integration test, the causality test, and the Vector Autoregressive (VAR) test. The study showed that there is a correlation between the current account deficit and the budget deficit in the long term. The study results also showed a two way causal relationship between the current account deficit and the federal budget deficit which indicates a twin deficit in the US economy during the studied period.