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

Khalil Ahmed El-Namrouty; Ahmed Mahmoud Saidam

doi:doi:10.11648/j.ijefm.20150301.17

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

Khalil Ahmed El-Namrouty, Ahmed Mahmoud Saidam

Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 1)

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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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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TY  - JOUR
T1  - The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012)
AU  - Khalil Ahmed El-Namrouty
AU  - Ahmed Mahmoud Saidam
Y1  - 2015/02/13
PY  - 2015
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
EP  - 67
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

Khalil Ahmed El-Namrouty

Dep’t of Economics and Political Science, Islamic University, Gaza, Gaza Strip, Palestinian authority
Ahmed Mahmoud Saidam

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

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Plain Text BibTeX RIS

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

Copy | Download

@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}
}

Copy | Download

TY  - JOUR
T1  - The Effects of Budget Deficit on Current Account: Case Study (Palestinian Territories 1996 – 2012)
AU  - Khalil Ahmed El-Namrouty
AU  - Ahmed Mahmoud Saidam
Y1  - 2015/02/13
PY  - 2015
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
EP  - 67
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  -

Copy | Download