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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Main Authors: Habibullah, Muzafar Shah, Chee, Kok Cheah, Abdul Hamid, Baharom
Format: Article
Language:English
Published: Center for Promoting Ideas 2011
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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spelling 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
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description 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.
format Article
author Habibullah, Muzafar Shah
Chee, Kok Cheah
Abdul Hamid, Baharom
spellingShingle 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
publishDate 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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score 13.211869