THE RELATIONSHIP BETWEEN BUDGET DEFICIT AND INFLATION IN SYRIA FOR THE PERIOD (1990-2010).
Journal Title: International Journal of Advanced Research (IJAR) - Year 2018, Vol 6, Issue 9
Abstract
Government budget deficit has been one of the most critical issues in the countries\' historical economic problems. The budget deficit-inflation relationship is not always obvious and it varies between countries. This paper investigates the long-run and the short-run relationship between budget deficit and inflation in Syria, by using annual data for the period of 1990-2010. We employ johanson test approach of co-integration to investigate the long-run relationship between budget deficit and inflation within the Vector error-correction model (VECM). The empirical results suggest that there is significant and positive long-run relationship between budget deficit and inflation in Syria, while it does not exist on the short-run.
Authors and Affiliations
Fadia Ibrahim al Bouza, Samir Sharaf.
Keywords
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- EP ID EP400596
- DOI 10.21474/IJAR01/7644
- Views 60
- Downloads 0
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