Citation
Habibullah, Muzafar Shah and Chee, Kok Cheah and Abdul Hamid, Baharom
(2011)
Budget deficits and inflation in thirteen Asian developing countries.
International Journal of Business and Social Science, 2 (9).
pp. 192-204.
ISSN 2219-1933; ESSN: 2219-6021
Abstract
In this study we attempt to determine the long-run relationship between budget deficit and inflation in thirteen Asian developing countries, namely; Indonesia, Malaysia, the Philippines, Myanmar, Singapore, Thailand, India, South Korea, Pakistan, Sri Lanka, Taiwan, Nepal and Bangladesh. Using annual data for the period 1950-1999 our Granger causality within the error-correction model (ECM) framework suggest that all variables involved (budget deficits, money supply and inflation) are integrated of order one. Our ECM model estimates indicate the existence of a long-run relationship between inflation and budget deficits. Thus, we conclude that budget deficits are inflationary in Asian developing countries.
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Official URL or Download Paper: http://ijbssnet.com/journal/index/376
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Additional Metadata
| Item Type: | Article |
|---|---|
| Divisions: | Faculty of Economics and Management |
| Publisher: | Center for Promoting Ideas |
| Keywords: | Granger causality; Asian countries; Budget deficit |
| Depositing User: | Azana Abd Hadi |
| Date Deposited: | 10 Feb 2015 07:55 |
| Last Modified: | 14 Sep 2015 01:02 |
| URI: | http://psasir.upm.edu.my/id/eprint/22789 |
| Statistic Details: | View Download Statistic |
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