The threshold effect of public debt on the twin imbalances: Evidence from MENA countries

References

• Abell J, D 1990. “Twin Deficits During the 1980s: An Empirical Investigation.” Journal of Macroeconomics 12 (1): 81–96. doi:10.1016/0164-0704(90)90057-H.
   Web of Science ®Google Scholar
• Alexander, S. S. 1952. “Effects of a Devaluation on a Trade Balance.” Staff Papers – International Monetary Fund 2 (2): 263.
   Google Scholar
• Alshammary, D. M., Z. Abdul Karim, N. Khalid, and R. Ahmad. 2020a. “Debt-growth Nexus in the MENA Region: Evidence from a Panel Threshold Analysis.” Economies 8 (4): 102.
   Web of Science ®Google Scholar
• Alshammary, M. D., N. Khalid, Z. A. Karim, and R. Ahmad. 2020b. “Twin Deficits and the Feldstein-Horioka Hypothesis in the MENA Region: New Evidence Using Panel VAR Analysis.” International Journal of Economics & Management 14 (3): 311–329.
   Google Scholar
• Arai, R., and M. Nakazawa. 2014. “A Numerical Analysis of Japan’s Fiscal Sustainability in a Simple OLG Model.” Applied Economics Letters 21 (17): 1194–1197.
   Web of Science ®Google Scholar
• Arezki, R., and F. Belhaj. 2018. “Une nouvelle économie pour le Moyent-Oreint et l’Afrique du Nord.” International Bank for Reconstruction and Development / The World Bank.
   Google Scholar
• Barnes, S., J. Lawson, and A. Radziwill. 2010. “Current Account Imbalances in the Euro Area: A Comparative Perspective.” Organization for Economic Co-operation and Development Economics Department, Working Paper, 826.
   Google Scholar
• Barro, R. J. 1989. “The Ricardian Approach to Budget Deficits.” Journal of Economic Perspectives 3 (2): 37–54.
   Web of Science ®Google Scholar
• Baum, A., M. Ribeiro, and P. Weber. 2012. Fiscal Multipliers and the State of the Economy. IMF Working Papers 2012/286, International Monetary Fund.
   Google Scholar
• Benayed, W., F. B. Gabsi, and S. O. Belguith. 2015. “Threshold Effect of Public Debt on Domestic Investment: Evidence from Selected African Countries.” Theoretical and Applied Economics 4 (605): 189–198.
   Google Scholar
• Blanchard, O. J., and P. A. Diamond. 1990. The Beveridge Curve.
   Google Scholar
• Blanchard, O. J., and F. Giavazzi. 2002. “Current Account Deficits in the Euro Area: The End of the Feldstein-Horioka Puzzle?” Brookings Papers on Economic Activity 2002 (2): 147–209.
   Google Scholar
• Blanchard, O., and R. Perotti. 2002. “An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output.” The Quarterly Journal of Economics 117 (4): 1329–1368. doi:10.1162/003355302320935043.
   Web of Science ®Google Scholar
• Bluedorn, J., and D. Leigh. 2011. “Revisiting the Twin Deficits Hypothesis: The Effect of Fiscal Consolidation on the Current Account.” IMF Economic Review 59 (4): 582–602.
   Web of Science ®Google Scholar
• Bousnina, R., and F. B. Gabsi. 2022. “Current Account Balance and Financial Development in MENA Countries: The Role of Institutions.” Comparative Economic Studies 64 (1): 109–142.
   Web of Science ®Google Scholar
• Bousnina, R., S. Redzepagic, and F. B. Gabsi. 2021. “Sustainability of Current Account Balances in MENA Countries: Threshold Cointegration Approach.” Economic Change and Restructuring 54 (1): 241–264.
   Web of Science ®Google Scholar
• Bussière, Matthieu, Michele Ca’ Zorzi, Alexander Chudik, and Alistair Dieppe. 2010. “Methodological Advances in the Assessment of Equilibrium Exchange Rates.” Working Paper Series 1151. European Central Bank.
   Google Scholar
• Bussiere, M., M. Fratzscher, and G. J. Müller. 2004. “Current Account Dynamics in OECD and EU Acceding Countries - an Intertemporal Approach.” SSRN Electronic Journal. doi:10.2139/ssrn.515074.
   Google Scholar
• Calderon, C., L. Zanforlin, and A. Chong. 2001. “Are African Current Account Deficits Different? Stylized Facts, Transitory Shocks, and Decomposition Analysis.” International Monetary Fund, IMF Working Papers 01.
   Google Scholar
• Chang, T., and G. Chiang. 2012. “Transitional Behavior of Government Debt Ratio on Growth: The Case of OECD Countries.” Journal for Economic Forecasting 15 (2): 24–37.
   Web of Science ®Google Scholar
• Checherita-Westphal, C., and P. Rother. 2012. “The Impact of High Government Debt on Economic Growth and its Channels: An Empirical Investigation for the Euro Area.” European Economic Review 56 (7): 1392–1405.
   Web of Science ®Google Scholar
• Chinn, M., and E. Prasad. 2003. “Medium-Term Determinants of Current Accounts in Industrial and Developing Countries: An Empirical Exploration.” Journal of International Economics 59: 47–76.
   Web of Science ®Google Scholar
• Clower, E., and H. Ito. 2012. “The Persistence of Current Account Balances and Its Determinants: The Implications for Global Rebalancing.” Macroeconomics Working Papers 23381, East Asian Bureau of Economic Research.
   Google Scholar
• Corsetti, G., and G. J. Müller. 2006. “Budget Deficit and Current Accounts: Openness and Fiscal Persistence.” Economic Policy 21 (48): 597–638.
   Google Scholar
• Epaphra, M. 2017. “Analysis of Budget Deficits and Macroeconomic Fundamentals: A VAR-VECM Approach.” Journal of Economics and Management 30: 20–57.
   Google Scholar
• Fattouh, B., and L. Mahadeva. 2012. Assessing the Finanzialization Hypothesis (No. 49). OIES Paper: WPM.
   Google Scholar
• Feldstein, M., and P. Bacchetta. 1989. “National Saving and International Investment.” NBER Working Papers 3164. National Bureau of Economic Research, Inc.
   Google Scholar
• Fleming, J. M. 1962. “Domestic Financial Policies under Fixed and Floating Exchange Rates.” International Monetary Fund, Working Paper 9.
   Google Scholar
• Forte, F., and C. Magazzino. 2013. “Twin Deficits in the European Countries.” International Advances in Economic Research 19 (3): 289–310.
   Google Scholar
• Gagnon, J. 2017. “Do Governments Drive Global Trade Imbalances?” Peterson Institute for International Economics Working Paper 17-15 (Washington).
   Google Scholar
• Gaysset, I., T. Lagoarde-Segot, and S. Neaime. 2019. “Twin Deficits and Fiscal Spillovers in the EMU's Periphery. A Keynesian Perspective.” Economic Modelling 76: 101–116.
   Web of Science ®Google Scholar
• Ghafur, M. 2020. “Twin Deficit Phenomena in the Two Government Eras in Indonesia.” Jurnal Analisis Bisnis Ekonomi 18 (1): 36–48.
   Google Scholar
• Gonzalez, L. M., and R. Bermejo. 2005. “A Semi-Lagrangian Level Set Method for Incompressible Navier-Stokes Equations with Free Surface.” International Journal for Numerical Methods in Fluids 49 (10): 1111–1146. doi:10.1002/(ISSN)1097-0363.
   Web of Science ®Google Scholar
• González, L. M., E. Ferrer, and H. R. Díaz-Ojeda. 2017. “Onset of Three-dimensional Flow Instabilities in Lid-driven Circular Cavities.” Physics of Fluids 29 (6): 064102. doi:10.1063/1.4984242.
   Web of Science ®Google Scholar
• Hansen, B. E. 1999. “Threshold Effects in Non-Dynamic Panels: Estimation, Testing, and Inference.” Journal of Econometrics 93 (2): 345–368.
   Web of Science ®Google Scholar
• Hansen, B. 2001. “The New Econometrics of Structural Change: Dating Breaks in U.S. Labour Productivity.” Journal of Economic Perspectives 15 (4): 117–128.
   Web of Science ®Google Scholar
• Harberger, A. C. 1950. “Currency Depreciation, Income, and the Balance of Trade.” Journal of Political Economy 58 (1): 47–60.
   Web of Science ®Google Scholar
• Herrmann, S., and A. Jochem. 2005. “Determinants of Current Account Developments in the Central and East European EU Member States: Consequences for the Enlargement of the Euro Area.” Deutsche Bundesbank Discussion Paper 32/2005.
   Google Scholar
• Huidrom, R. M., A. Kose, J. Lim, and F. L. Ohnsorge. 2020. “Why do Fiscal Multipliers Depend on Fiscal Positions?” Journal of Monetary Economics 114: 109–125.
   Web of Science ®Google Scholar
• Ilzetzki, E., E. Mendoza, and C. Végh. 2013. “How Big (Small?) Are Fiscal Multipliers?” Journal of Monetary Economics 60 (2): 239–254.
   Web of Science ®Google Scholar
• International Monetary Fund. 2019, October. Global Financial Stability Report: Lower for Longer. Washington, DC: IMF.
   Google Scholar
• Ivanova, A. 2012. “Current Account Imbalances: Can Structural Policies Make a Difference.” International Monetary Fund Working Paper 12/61.
   Google Scholar
• Jackson, E., and M. Jabbie. 2020. “Twin Deficits Hypothesis as an Indication of Government Failure in Sierra Leone: An Empirical Investigation (1980–2018).” İktisat Politikası Araştırmaları Dergisi 7 (1): 43–68.
   Google Scholar
• Josifidis, K., R. D. Mitrovic, and S. Bodor. 2021. “The Effect of Fiscal Deficits on the External Imbalances in the European Union.” Panoeconomicus 68 (5): 625–652. doi:10.2298/PAN190523017J.
   Web of Science ®Google Scholar
• Kilian, L., and D. P. Murphy. 2014. “The Role of Inventories and Speculative Trading in the Global Market for Crude Oil.” Journal of Applied Econometrics 29 (3): 454–478.
   Web of Science ®Google Scholar
• Kim, S., and N. Roubini. 2008. “Twin Deficit or Twin Divergence? Fiscal Policy, Current Account, and Real Exchange Rate in the U.S.” Journal of International Economics 74 (2): 362–383.
   Web of Science ®Google Scholar
• Klapper, L. F., and I. Love. 2004. “Corporate Governance, Investor Protection, and Performance in Emerging Markets.” Journal of Corporate Finance 10 (5): 703–728.
   Web of Science ®Google Scholar
• Kosteletou, N. E. 2013. “Financial Integration, Euro and the Twin Deficits of Southern Eurozone Countries.” Panoeconomicus 60 (Special Issue): 161–178.
   Google Scholar
• Lane, P. R., and G. M. Milesi-Ferretti. 2012. “External Adjustment and the Global Crisis.” Journal of International Economics 88 (2): 252–226.
   Web of Science ®Google Scholar
• Misztal, P. 2012. “The Link Between the Government Budget and the Current Account in the Baltic Countries.” Central European Review of Economics & Finance 2 (1): 45–62.
   Google Scholar
• Monacelli, T., and R. Perotti. 2007. “Fiscal Policy, the Trade Balance, and the Real Exchange Rate: Implications for International Risk Sharing.” International Monetary Fund 8th Jacques Polak Annual Research Conference.
   Google Scholar
• Mundell, R. A. 1963. “Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates.” The Canadian Journal of Economics and Political Science 29 (4): 475–485.
   Web of Science ®Google Scholar
• Ndoricimpa, A. 2020. “Threshold Effects of Public Debt on Economic Growth in Africa: New Evidence.” Journal of Economics and Development 22 (2): 187–207.
   Google Scholar
• Neaime, S. 2015. “Twin Deficits and the Sustainability of Public Debt and Exchange Rate Policies in Lebanon.” Research in International Business and Finance 33: 127–143.
   Google Scholar
• Nickel, C., and A. Tudyka. 2014. “Fiscal Stimulus in Times of High Debt: Reconsidering Multipliers and Twin Deficits.” Journal of Money, Credit and Banking 46 (7): 1313–1344.
   Web of Science ®Google Scholar
• Nickel, C., and I. Vansteenkiste. 2008. “Fiscal Policies, the Current Account and Ricardian Equivalence.” European Central Bank Working Paper 935.
   Google Scholar
• Obadić, A., T. Globan, and O. Nadoveza. 2014. ���Contradicting the Twin Deficits Hypothesis: The Role of Tax Revenues Composition.” Panoeconomicus 61: 653–667.
   Web of Science ®Google Scholar
• Okombi, I. F. 2020. “Twin Deficits in Sub-Saharan African Countries: Evidence Through Debt.” Economics Bulletin 40 (3): 2550–2564.
   Web of Science ®Google Scholar
• Presbitero, A. F. 2012. “Total Public Debt and Growth in Developing Countries.” The European Journal of Development Research 24 (4): 606–626.
   Web of Science ®Google Scholar
• Rachdi, H., A. Hakimi, and H. Hamdi. 2018. “Liberalization, Crisis and Growth in MENA Region: Do Institutions Matter?” Journal of Policy Modeling 40 (4): 810–826.
   Web of Science ®Google Scholar
• Santini, G. 2005. “Utjecaj deficita robne razmjene s inozemstvom na porezne prihode Hrvatske u razdoblju od 1994–2004.” godine. Ekonomija: časopis za ekonomsku teorijuipolitiku 10 (3): 621–646.
   Google Scholar
• Shastri, S., A. K. Giri, and G. Mohapatra. 2017. “Assessing the Triple Deficit Hypothesis for Major South Asian Countries: A Panel Data Analysis.” International Journal of Economics and Financial Issues 7 (4): 292–299.
   Google Scholar
• Siničáková, M., V. Šuliková, and B. Gavurová. 2017. “Twin Deficits Threat in the European Union.” Ekonomie a Management 20 (1): 144–156.
   Web of Science ®Google Scholar
• Somaye, S. 2012. “Relationship Between Government Spending and Revenue: Evidence from Oil Exporting Countries.” International Journal of Economics and Management Engineering 2 (2): 95–97.
   Google Scholar
• Vamvoukas, G., and Stella N. Spilloti. 2015. “The Effect of Budget Deficits on Current Accounts in the EMU.” Investment Management and Financial Innovations 12 (4): 115–122.
   Google Scholar
• World Bank. 2020. World Development Report 2020 : Trading for Development in the Age of Global Value Chains. Washington, DC: The World Bank.
   Google Scholar
• Zivot, E., and D. W. K. Andrews. 1992. “Further Evidence on the Great Crash, the Oil-price Shock, and the Unit-root Hypothesis.” Journal of Business and Economics Statistics 10 (3): 251–270.
   Web of Science ®Google Scholar