Two Deficits and Economic Growth: Case of CEE Countries in Transition
The main goal of this contribution was to provide evidence on the dynamic interdependencies between economic growth and budget and trade deficits in ten new EU members in transition in the last decade. It is worth to note, that besides establishing directions of causal relationships this paper also...
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| Format: | Article |
| Language: | English |
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AGH UNIVERSITY PRESS
2012-12-01
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| Series: | Managerial Economics |
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| Online Access: | https://journals.agh.edu.pl/manage/article/view/583 |
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| author | Henryk Gurgul Łukasz Lach |
| author_facet | Henryk Gurgul Łukasz Lach |
| author_sort | Henryk Gurgul |
| collection | DOAJ |
| description | The main goal of this contribution was to provide evidence on the dynamic interdependencies between economic growth and budget and trade deficits in ten new EU members in transition in the last decade. It is worth to note, that besides establishing directions of causal relationships this paper also derived some suggestions on signs of the dynamic dependencies analyzed. Outcomes of this paper confirmed that the budget deficits were significantly slowing down the GDP growth rates in case of new EU-members in transition. In addition, these deficits had negative impact on the convergence process of examined countries towards the highly developed European economies. The evidence supporting adverse causality was considerably weaker. The empirical results allow to claim that in the period under study there was a unidirectional negative Granger causality from budget deficits to trade deficits. Therefore, in case of CEE economies in transition the twin deficit hypothesis was not the case. |
| format | Article |
| id | doaj-art-0424f2f8cb7b46f0b0af3a4092c05c69 |
| institution | Kabale University |
| issn | 1898-1143 2353-3617 |
| language | English |
| publishDate | 2012-12-01 |
| publisher | AGH UNIVERSITY PRESS |
| record_format | Article |
| series | Managerial Economics |
| spelling | doaj-art-0424f2f8cb7b46f0b0af3a4092c05c692024-12-19T16:12:00ZengAGH UNIVERSITY PRESSManagerial Economics1898-11432353-36172012-12-011210.7494/manage.2012.12.79Two Deficits and Economic Growth: Case of CEE Countries in TransitionHenryk GurgulŁukasz LachThe main goal of this contribution was to provide evidence on the dynamic interdependencies between economic growth and budget and trade deficits in ten new EU members in transition in the last decade. It is worth to note, that besides establishing directions of causal relationships this paper also derived some suggestions on signs of the dynamic dependencies analyzed. Outcomes of this paper confirmed that the budget deficits were significantly slowing down the GDP growth rates in case of new EU-members in transition. In addition, these deficits had negative impact on the convergence process of examined countries towards the highly developed European economies. The evidence supporting adverse causality was considerably weaker. The empirical results allow to claim that in the period under study there was a unidirectional negative Granger causality from budget deficits to trade deficits. Therefore, in case of CEE economies in transition the twin deficit hypothesis was not the case.https://journals.agh.edu.pl/manage/article/view/583economic growthtwin deficitsCEE transition economies |
| spellingShingle | Henryk Gurgul Łukasz Lach Two Deficits and Economic Growth: Case of CEE Countries in Transition Managerial Economics economic growth twin deficits CEE transition economies |
| title | Two Deficits and Economic Growth: Case of CEE Countries in Transition |
| title_full | Two Deficits and Economic Growth: Case of CEE Countries in Transition |
| title_fullStr | Two Deficits and Economic Growth: Case of CEE Countries in Transition |
| title_full_unstemmed | Two Deficits and Economic Growth: Case of CEE Countries in Transition |
| title_short | Two Deficits and Economic Growth: Case of CEE Countries in Transition |
| title_sort | two deficits and economic growth case of cee countries in transition |
| topic | economic growth twin deficits CEE transition economies |
| url | https://journals.agh.edu.pl/manage/article/view/583 |
| work_keys_str_mv | AT henrykgurgul twodeficitsandeconomicgrowthcaseofceecountriesintransition AT łukaszlach twodeficitsandeconomicgrowthcaseofceecountriesintransition |