The mechanism for transferring the impact of the deficits and surpluses in the public budget to the balance of payments
DOI:
https://doi.org/10.25007/ajnu.v13n2a1835Abstract
The purpose of this paper is to clarify how the general budget (surplus or deficit) impacts diverse sorts of economic activity both inside and outside the nation, including the balance of payments as one of the key economic indicators to comprehend a nation's economic reality with other countries. Numerous studies have been conducted at various levels and for various economies in light of the general budget's significance in economic life and its impact on numerous economic variables, particularly the balance of payments. This study differs in several ways from previous studies in that it builds its approach on linking strategies for dealing with the balance of payments with the public budget and the use of a presentation of that relationship through many equations and illustrative charts. The study supports the research hypothesis through descriptive analysis.
Downloads
References
Adom, A. D., & Elbahnasawy, N. G. (2016). Saving-Investment Gap and Economic Growth in Developing Countries: Simulated Evidence from Selected Countries in Africa. VOLUME III(1), 89.
Alawin, M., & Oqaily, M. (2017). Current account balance, inflation, industry and sustainable development in Jordan. Revista galega de economía: Publicación Interdisciplinar da Facultade de Ciencias Económicas e Empresariais, 26(3), 45-56.
Allen, R., & Tommasi, D. (2001). (eds.) Managing Public Expenditure. A Reference Book for Transition Countries. Paris, OECD.
Bernheim, B. D. (1988). Budget deficits and the balance of trade. Tax policy and the Economy, 2, 1-31.
Chouraqui, J.-C., & Price, R. (1983). Medium-term financial strategy: the co-ordination of fiscal and monetary policies. Citeseer.
Ciani, A. (2021). Income inequality and the quality of imports. Review of World Economics, 157(2), 375-416.
Goodwin, N., Harris, J. M., Nelson, J. A., Rajkarnikar, P. J., Roach, B., & Torras, M. (2018). Macroeconomics in context. Routledge.
Gramlich, E. M. (2004). Budget and Trade Deficits: Linked, Both Worrisome in the Long Run, but not Twins. Remarks at the Los Angeles Chapter of the National Association of Business Economists. Photocopy (March 31).
Helliwell, J. F. (1978). The balance of payments: a survey of Harry Johnson's contributions. Canadian Journal of Economics, S55-S86.
Henry, J., Hernandez de Cos, P., & Momigliano, S. (2004). The Short-Term Impact of Government Budgets on Prices. Evidence from Macroeconometric Models," European Central Bank Working Paper Series(396).
Horton, M., & El-Ganainy, A. (2012). Fiscal policy: taking and giving away. Finance and Development, International Monetary Fund. Retrieved from: https://www. imf. org/external/pubs/ft/fandd/basics/fiscpol. htm.
IMF, I. (2009). Balance of Payments and International Investment Position Manual–. In.
Leon, J. A. R., Chacon, E. R. C., & Ortiz, D. P. V. (2021). Proposed model for predicting economic growth based on the Keynesian aggregate demand equation: Case of Ecuador 1965-2018. Universidad Ciencia y Tecnología, 25(111), 49-56.
Makin, A. J. (2018). The Limits of Fiscal Policy. Springer.
Malimi, K. (2013). The Monetary Approach to the Exchange Rate Determination: An Inconsistent Paradigm. International Journal of Finance and Accounting, 2(7), 341-347.
Mussa, M. (1974). A monetary approach to balance-of-payments analysis. Journal of Money, Credit and Banking, 6(3), 333-351.
Publishing, O., Co-operation, O. f. E., & Development. (2010). OECD Trade Policy Studies: Economic Impact of Export Restrictions on Raw Materials.
Schneider, E. (2013). Money Income and Employment. Routledge.
Thirlwall, A., & Gibson, H. D. (1992). The Balance-of-Payments Equilibrium Growth Rate. In Balance-of-Payments Theory and the United Kingdom Experience (pp. 323-336). Springer.
Weinstock, L. R. (2021). Fiscal policy: economic effects. Congressional Research Service Report(45723).
Wellisch, D. (2000). Theory of public finance in a federal state. Cambridge University Press.
Yellen, J. L. (1989). Symposium on the budget deficit. Journal of Economic Perspectives, 3(2), 17-21.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Academic Journal of Nawroz University
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors retain copyright
The use of a Creative Commons License enables authors/editors to retain copyright to their work. Publications can be reused and redistributed as long as the original author is correctly attributed.
- Copyright
- The researcher(s), whether a single or joint research paper, must sell and transfer to the publisher (the Academic Journal of Nawroz University) through all the duration of the publication which starts from the date of entering this Agreement into force, the exclusive rights of the research paper/article. These rights include the translation, reuse of papers/articles, transmit or distribute, or use the material or parts(s) contained therein to be published in scientific, academic, technical, professional journals or any other periodicals including any other works derived from them, all over the world, in English and Arabic, whether in print or in electronic edition of such journals and periodicals in all types of media or formats now or that may exist in the future. Rights also include giving license (or granting permission) to a third party to use the materials and any other works derived from them and publish them in such journals and periodicals all over the world. Transfer right under this Agreement includes the right to modify such materials to be used with computer systems and software, or to reproduce or publish it in e-formats and also to incorporate them into retrieval systems.
- Reproduction, reference, transmission, distribution or any other use of the content, or any parts of the subjects included in that content in any manner permitted by this Agreement, must be accompanied by mentioning the source which is (the Academic Journal of Nawroz University) and the publisher in addition to the title of the article, the name of the author (or co-authors), journal’s name, volume or issue, publisher's copyright, and publication year.
- The Academic Journal of Nawroz University reserves all rights to publish research papers/articles issued under a “Creative Commons License (CC BY-NC-ND 4.0) which permits unrestricted use, distribution, and reproduction of the paper/article by any means, provided that the original work is correctly cited.
- Reservation of Rights
The researcher(s) preserves all intellectual property rights (except for the one transferred to the publisher under this Agreement).
- Researcher’s guarantee
The researcher(s) hereby guarantees that the content of the paper/article is original. It has been submitted only to the Academic Journal of Nawroz University and has not been previously published by any other party.
In the event that the paper/article is written jointly with other researchers, the researcher guarantees that he/she has informed the other co-authors about the terms of this agreement, as well as obtaining their signature or written permission to sign on their behalf.
The author further guarantees:
- The research paper/article does not contain any defamatory statements or illegal comments.
- The research paper/article does not violate other's rights (including but not limited to copyright, patent, and trademark rights).
This research paper/article does not contain any facts or instructions that could cause damages or harm to others, and publishing it does not lead to disclosure of any confidential information.