Economics, Econometrics and Finance
4 years ago

BRICS Economies Face Economic Crisis Due to Twin Deficit Threshold Effect.

Cogent Economics & Finance
Investigating a threshold effect in Twin Deficit Hypothesis: Evidence from the BRICS Economies
Tochukwu Timothy Okoli, Devi Datt Tewari, Kehinde Damilola Ileasanmi

Paper Summary

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The article investigates a threshold effect in the Twin Deficit Hypothesis in the BRICS economies. The researchers used mathematical formulas to analyze the relationship between budget deficits and current account deficits. They found evidence of a threshold effect, suggesting that the impact of budget deficits on current account deficits varies depending on the level of the deficits.