Business, Management and Accounting
4 years ago

Twin deficits in Dominican economy linked, long-term consequences revealed.

MPRA Paper
¿Hay evidencias de déficits gemelos en la economía dominicana? [Is there evidence of twin deficits in the Dominican economy?]
Marycris Brito Romero, Anadel G. Peguero, Alexis Cruz-Rodríguez

Paper Summary

The article examines if there are twin deficits in the Dominican economy from 1955 to 2014. The researchers found a connection between fiscal and trade balance deficits in the long run. They also discovered that deficits can cause each other. However, the results on causality were inconclusive. The effects of large deficits are seen over time, not immediately. Factors like trade openness and financial development also play a role in the model.

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