Zusammenfassung:
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.