Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215532 
Year of Publication: 
2014
Series/Report no.: 
Centrale Bank van Suriname Working Paper Series No. 14/02
Publisher: 
Centrale Bank van Suriname, Paramaribo
Abstract: 
This study investigates the relationship and directionality between the overall fiscal balance and the external current account balance of Suriname during 1970 - 2011. Both balances predominantly show deficits, however since 2006 the external current account balance shows surpluses due to the diversification of the mining sector as a result of booming international commodity prices. A vector error correction framework indicated the existence of a long-run relationship between these two variables. In the long run a bidirectional relation was found between the two balances, while in the short run no significant effect was encountered.
Subjects: 
Twin Deficits
Budget Balance
Current Account Balance
JEL: 
E62
F32
F41
Additional Information: 
The views expressed in this research paper are those of the authors and do not necessarily represent those of the Centrale Bank van Suriname. Research papers describe research in progress by the authors and are published to elicit comments and to further debate.
Document Type: 
Working Paper

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