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The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012)

Received: 16 January 2015     Accepted: 29 January 2015     Published: 13 February 2015
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Abstract

The researchers examined the effects of public budget deficit on current account in the Palestinian Territories (1996 - 2012). To determine the appropriate economic tools that can be used to reduce the current account chronic deficit, the nature and components of the Palestinian Authority’s expenditures and revenues will be studied. Statistical analysis approach is used to illustrate the impact of public budget deficit on current account. This was implemented after checking the stationary of time series by adopting unit root test (Augmented Dickey Fuller). The study findings confirm the positive relationship between public budget deficit and current account in the Palestinian Territories. It appears that an increase in public budget deficit by one USD million will increase the current account deficit by USD 3.08 million. In addition, balance of trade deficit increased by USD 465.3 thousand when the other independent variables such as government and private investments in the model remain constant.

Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 1)
DOI 10.11648/j.ijefm.20150301.17
Page(s) 57-67
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Public Budget Deficit, Current Account, Fiscal Policy, Palestinian Territories

References
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Cite This Article
  • APA Style

    Khalil Ahmed El-Namrouty, Ahmed Mahmoud Saidam. (2015). The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012). International Journal of Economics, Finance and Management Sciences, 3(1), 57-67. https://doi.org/10.11648/j.ijefm.20150301.17

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    ACS Style

    Khalil Ahmed El-Namrouty; Ahmed Mahmoud Saidam. The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012). Int. J. Econ. Finance Manag. Sci. 2015, 3(1), 57-67. doi: 10.11648/j.ijefm.20150301.17

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    AMA Style

    Khalil Ahmed El-Namrouty, Ahmed Mahmoud Saidam. The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012). Int J Econ Finance Manag Sci. 2015;3(1):57-67. doi: 10.11648/j.ijefm.20150301.17

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  • @article{10.11648/j.ijefm.20150301.17,
      author = {Khalil Ahmed El-Namrouty and Ahmed Mahmoud Saidam},
      title = {The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012)},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {3},
      number = {1},
      pages = {57-67},
      doi = {10.11648/j.ijefm.20150301.17},
      url = {https://doi.org/10.11648/j.ijefm.20150301.17},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150301.17},
      abstract = {The researchers examined the effects of public budget deficit on current account in the Palestinian Territories (1996 - 2012). To determine the appropriate economic tools that can be used to reduce the current account chronic deficit, the nature and components of the Palestinian Authority’s expenditures and revenues will be studied. Statistical analysis approach is used to illustrate the impact of public budget deficit on current account. This was implemented after checking the stationary of time series by adopting unit root test (Augmented Dickey Fuller). The study findings confirm the positive relationship between public budget deficit and current account in the Palestinian Territories. It appears that an increase in public budget deficit by one USD million will increase the current account deficit by USD 3.08 million. In addition, balance of trade deficit increased by USD 465.3 thousand when the other independent variables such as government and private investments in the model remain constant.},
     year = {2015}
    }
    

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    T1  - The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012)
    AU  - Khalil Ahmed El-Namrouty
    AU  - Ahmed Mahmoud Saidam
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    N1  - https://doi.org/10.11648/j.ijefm.20150301.17
    DO  - 10.11648/j.ijefm.20150301.17
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 57
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    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20150301.17
    AB  - The researchers examined the effects of public budget deficit on current account in the Palestinian Territories (1996 - 2012). To determine the appropriate economic tools that can be used to reduce the current account chronic deficit, the nature and components of the Palestinian Authority’s expenditures and revenues will be studied. Statistical analysis approach is used to illustrate the impact of public budget deficit on current account. This was implemented after checking the stationary of time series by adopting unit root test (Augmented Dickey Fuller). The study findings confirm the positive relationship between public budget deficit and current account in the Palestinian Territories. It appears that an increase in public budget deficit by one USD million will increase the current account deficit by USD 3.08 million. In addition, balance of trade deficit increased by USD 465.3 thousand when the other independent variables such as government and private investments in the model remain constant.
    VL  - 3
    IS  - 1
    ER  - 

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Author Information
  • Dep’t of Economics and Political Science, Islamic University, Gaza, Gaza Strip, Palestinian authority

  • Economics Development, Islamic University, Gaza, Gaza Strip, Palestinian authority

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