Article ID Journal Published Year Pages File Type
5054598 Economic Modelling 2013 6 Pages PDF
Abstract
The purpose of this study is to determine the causality between trade deficit and government expenditures in the Turkish economy. We employ bootstrap process-based Toda-Yamamoto causality and frequency domain analysis methods. Results obtained from both methods imply that there is a bi-directional causality between trade deficits and government expenditures. Different from Toda-Yamamoto causality analysis, frequency domain causality analysis indicates that the causality running from government expenditures to trade deficits exists in the short and medium terms while causality runs from trade deficits to government expenditures in the short and long runs.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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