Yohane Khamfula
Country: South Africa
Affiliation: Professor, School of Economic and Decision Science, North West University
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Budget deficits, investment and economic growth: a panel cointegration approach
Goitsemodimo Abel Molocwa , Yohane Khamfula , Priviledge Cheteni doi: http://dx.doi.org/10.21511/imfi.15(3).2018.15Investment Management and Financial Innovations Volume 15, 2018 Issue #3 pp. 182-189
Views: 989 Downloads: 179 TO CITE АНОТАЦІЯThis paper discusses the political economy of budget deficits among the BRICS nations between 1997 and 2016 using a panel cointegration approach to determine the long-run relationship between economic growth, budget deficits, inflation and gross investment. The results of the study show a long-run equilibrium association among economic growth and the selected variables. Furthermore, there is a positive relationship between budget deficit, inflation, and economic growth, for the period under study for BRICS countries. Lastly, the results support the view that there is bi-directional linkage from budget deficit to economic growth and vice versa.