Budget deficits and inflation in thirteen Asian developing countries
In this study we attempt to determine the long-run relationship between budget deficit and inflation in thirteen Asian developing countries, namely; Indonesia, Malaysia, the Philippines, Myanmar, Singapore, Thailand, India, South Korea, Pakistan, Sri Lanka, Taiwan, Nepal and Bangladesh. Using annual...
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Center for Promoting Ideas
2011
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Online Access: | http://psasir.upm.edu.my/id/eprint/22789/1/Budget%20deficits%20and%20inflation%20in%20thirteen%20Asian%20developing%20countries.pdf http://psasir.upm.edu.my/id/eprint/22789/ http://ijbssnet.com/journal/index/376 |
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my.upm.eprints.227892015-09-14T01:02:41Z http://psasir.upm.edu.my/id/eprint/22789/ Budget deficits and inflation in thirteen Asian developing countries Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom In this study we attempt to determine the long-run relationship between budget deficit and inflation in thirteen Asian developing countries, namely; Indonesia, Malaysia, the Philippines, Myanmar, Singapore, Thailand, India, South Korea, Pakistan, Sri Lanka, Taiwan, Nepal and Bangladesh. Using annual data for the period 1950-1999 our Granger causality within the error-correction model (ECM) framework suggest that all variables involved (budget deficits, money supply and inflation) are integrated of order one. Our ECM model estimates indicate the existence of a long-run relationship between inflation and budget deficits. Thus, we conclude that budget deficits are inflationary in Asian developing countries. Center for Promoting Ideas 2011-05 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22789/1/Budget%20deficits%20and%20inflation%20in%20thirteen%20Asian%20developing%20countries.pdf Habibullah, Muzafar Shah and Chee, Kok Cheah and Abdul Hamid, Baharom (2011) Budget deficits and inflation in thirteen Asian developing countries. International Journal of Business and Social Science, 2 (9). pp. 192-204. ISSN 2219-1933; ESSN: 2219-6021 http://ijbssnet.com/journal/index/376 |
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In this study we attempt to determine the long-run relationship between budget deficit and inflation in thirteen Asian developing countries, namely; Indonesia, Malaysia, the Philippines, Myanmar, Singapore, Thailand, India, South Korea, Pakistan, Sri Lanka, Taiwan, Nepal and Bangladesh. Using annual data for the period 1950-1999 our Granger causality within the error-correction model (ECM) framework suggest that all variables involved (budget deficits, money supply and inflation) are integrated of order one. Our ECM model estimates indicate the existence of a long-run relationship between inflation and budget deficits. Thus, we conclude that budget deficits are inflationary in Asian developing countries. |
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Article |
author |
Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom |
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Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom Budget deficits and inflation in thirteen Asian developing countries |
author_facet |
Habibullah, Muzafar Shah Chee, Kok Cheah Abdul Hamid, Baharom |
author_sort |
Habibullah, Muzafar Shah |
title |
Budget deficits and inflation in thirteen Asian developing countries |
title_short |
Budget deficits and inflation in thirteen Asian developing countries |
title_full |
Budget deficits and inflation in thirteen Asian developing countries |
title_fullStr |
Budget deficits and inflation in thirteen Asian developing countries |
title_full_unstemmed |
Budget deficits and inflation in thirteen Asian developing countries |
title_sort |
budget deficits and inflation in thirteen asian developing countries |
publisher |
Center for Promoting Ideas |
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2011 |
url |
http://psasir.upm.edu.my/id/eprint/22789/1/Budget%20deficits%20and%20inflation%20in%20thirteen%20Asian%20developing%20countries.pdf http://psasir.upm.edu.my/id/eprint/22789/ http://ijbssnet.com/journal/index/376 |
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