The relationship between fiscal and current account imbalances in OECD economies

Detalhes bibliográficos
Autor(a) principal: Afonso, António
Data de Publicação: 2018
Outros Autores: Opoku, Philemon Kwame
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/16429
Resumo: This study re-examines the nexus between the fiscal balance and the current account balance for 18 OECD countries for the period 1995Q1 to 2018Q1 using panel cointegration, and panel vector autoregressive (VAR) methods. Our results indicate that a strengthening in the fiscal balance by one percentage point of GDP leads to an improvement in the current account balance of about 0.1-0.3 percentage point of GDP. On the other hand, an increase in real government consumption generally leads to a deterioration in the current account balance. The impact of the real effective exchange rate is not statistically significant. The findings also confirm that there is a long-run relationship between the fiscal balance and the current account balance.
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spelling The relationship between fiscal and current account imbalances in OECD economiesFiscal imbalancesCurrent accountTwin-deficitPanel analysisThis study re-examines the nexus between the fiscal balance and the current account balance for 18 OECD countries for the period 1995Q1 to 2018Q1 using panel cointegration, and panel vector autoregressive (VAR) methods. Our results indicate that a strengthening in the fiscal balance by one percentage point of GDP leads to an improvement in the current account balance of about 0.1-0.3 percentage point of GDP. On the other hand, an increase in real government consumption generally leads to a deterioration in the current account balance. The impact of the real effective exchange rate is not statistically significant. The findings also confirm that there is a long-run relationship between the fiscal balance and the current account balance.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaAfonso, AntónioOpoku, Philemon Kwame2018-11-30T15:57:48Z2018-112018-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/16429engAfonso, António e Philemon Kwame Opoku (2018). "The relationship between fiscal and current account imbalances in OECD economies". Instituto Superior de Economia e Gestão – REM Working paper nº 061 - 20182184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:46:14Zoai:www.repository.utl.pt:10400.5/16429Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:50.344106Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The relationship between fiscal and current account imbalances in OECD economies
title The relationship between fiscal and current account imbalances in OECD economies
spellingShingle The relationship between fiscal and current account imbalances in OECD economies
Afonso, António
Fiscal imbalances
Current account
Twin-deficit
Panel analysis
title_short The relationship between fiscal and current account imbalances in OECD economies
title_full The relationship between fiscal and current account imbalances in OECD economies
title_fullStr The relationship between fiscal and current account imbalances in OECD economies
title_full_unstemmed The relationship between fiscal and current account imbalances in OECD economies
title_sort The relationship between fiscal and current account imbalances in OECD economies
author Afonso, António
author_facet Afonso, António
Opoku, Philemon Kwame
author_role author
author2 Opoku, Philemon Kwame
author2_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Afonso, António
Opoku, Philemon Kwame
dc.subject.por.fl_str_mv Fiscal imbalances
Current account
Twin-deficit
Panel analysis
topic Fiscal imbalances
Current account
Twin-deficit
Panel analysis
description This study re-examines the nexus between the fiscal balance and the current account balance for 18 OECD countries for the period 1995Q1 to 2018Q1 using panel cointegration, and panel vector autoregressive (VAR) methods. Our results indicate that a strengthening in the fiscal balance by one percentage point of GDP leads to an improvement in the current account balance of about 0.1-0.3 percentage point of GDP. On the other hand, an increase in real government consumption generally leads to a deterioration in the current account balance. The impact of the real effective exchange rate is not statistically significant. The findings also confirm that there is a long-run relationship between the fiscal balance and the current account balance.
publishDate 2018
dc.date.none.fl_str_mv 2018-11-30T15:57:48Z
2018-11
2018-11-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/16429
url http://hdl.handle.net/10400.5/16429
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Afonso, António e Philemon Kwame Opoku (2018). "The relationship between fiscal and current account imbalances in OECD economies". Instituto Superior de Economia e Gestão – REM Working paper nº 061 - 2018
2184-108X
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
publisher.none.fl_str_mv ISEG - REM - Research in Economics and Mathematics
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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