Twin deficits hypothesis and Feldstein-Horioka puzzle in Asian countries: is Keynesian alive?

Citation

Baharumshah, Ahmad Zubaidi and Soon, Siew Voon and Ismail, Hamizun (2012) Twin deficits hypothesis and Feldstein-Horioka puzzle in Asian countries: is Keynesian alive? In: National Research & Innovation Conference for Graduate Students in Social Sciences (GS-NRIC 2012), 7-9 Dec. 2012, Mahkota Hotel, Melaka. (pp. 391-399).

Abstract

The relevance of the twin deficits hypothesis in 13 Asian countries is examined, taking into account the presence of a structural break. The major findings based on an extended data set are: 1) the budget balance plays a significant role in the determination of a current account balance, and there is strong evidence supporting the Keynesian view of the twin deficits; 2) investment and real exchange rate have a noticeable impact on current account balance; and 3) the Feldstein-Horioka puzzle seems to be valid in most countries.

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Additional Metadata

Item Type:	Conference or Workshop Item (Paper)
Divisions:	Faculty of Economics and Management
Publisher:	Faculty of Economics and Management, Universiti Putra Malaysia
Keywords:	Twin deficit hypothesis; Global imbalances; Structural break
Depositing User:	Nabilah Mustapa
Date Deposited:	03 Apr 2017 07:43
Last Modified:	03 Apr 2017 07:43
URI:	http://psasir.upm.edu.my/id/eprint/51268
Statistic Details:	View Download Statistic

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