The Analysis of Fluctuations and Causality of Current Deficit Economic Growth and Short Term Capital Flows of Organization for Economic Co-Operation a
The Analysis of Fluctuations and Causality of Current Deficit Economic Growth and Short Term Capital Flows of Organization for Economic Co-Operation a

Summary/Abstract: In this study, Wald tests are carried out based on the method of Panel Granger and GMM to determine whether the causal relationship between economic growth and current budget deficit, short-term capital flows in 20 OECD countries for the period 1990-2010. Also SURADF and CADF testing was performed with the CDLM to test the stationary for these three variables. As a result of the panel causality tests, it has been determined a causal relationship from the current account deficit and short-term capital flows towards economic growth and from the current account deficit towards the short-term capital.

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