- Title
- Budget Deficits, the Savings Gap and Current Account Deficits in the Southern African Development Community
- Creator
- Kopeledi, Alyssa
- Subject
- Budget deficits -- South Africa Accounts current
- Date Issued
- 2020
- Date
- 2020
- Type
- Thesis
- Type
- Masters
- Type
- MCom (Economics)
- Identifier
- http://hdl.handle.net/10353/12392
- Identifier
- vital:39259
- Description
- This study examines the validity of the triple deficit hypothesis for a selected number of SADC countries, utilising secondary annual data for the period 1996-2018. Based on previous studies and theory, current account deficit was chosen as the dependent variable and budget deficit and the savings gap as the independent variables. The study makes use of both first generation and second-generation unit root tests to examine the time series properties of the data. The empirical results show that the data is integrated of different orders. Kao, Pedroni and Westerlund cointegration tests were carried out to examine the long-term relationship between the variables of interest. The empirical results revealed that there is a long-term relationship between current account deficit, budget deficit s and the savings gap. The long-run model under the Autoregressive Distributed Lag test revealed that, a positive and significant relationship exists between budget deficit and current account deficit at a significance level of 10% and a negative and insignificant relationship exists between savings gap and current account deficit in the long run. This suggests that an improvement in the current account balance in SADC countries requires fiscal stringency
- Format
- 100 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
- Hits: 1036
- Visitors: 1210
- Downloads: 275
Collections
UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | KOPELEDI A_200805106_MCOM ECO.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |