Testing the Twin Deficit Hypothesis: Evidence from the Republic of North Macedonia

Abstract

An econometric analysis of the twin deficit hypothesis is of special importance for the Republic of North Macedonia in view of its perspective membership in the European Union and from the point of view of its macroeconomic stability in the long run.

Keywords

• twin deficit
• granger causality
• var
• vecm
• c22
• e62
• f32
• f41
• h62