Vol. 6 (09) pp. 47-56 DOI: 10.21474/IJAR01/7644

THE RELATIONSHIP BETWEEN BUDGET DEFICIT AND INFLATION IN SYRIA FOR THE PERIOD (1990-2010).

and
  • Department of Financial.
  • Banking Sciences, Tishreen University, Lattakia, Syria.
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Abstract

Government budget deficit has been one of the most critical issues in the countries' historical economic problems. The budget deficit-inflation relationship is not always obvious and it varies between countries. This paper investigates the long-run and the short-run relationship between budget deficit and inflation in Syria, by using annual data for the period of 1990-2010. We employ johanson test approach of co-integration to investigate the long-run relationship between budget deficit and inflation within the Vector error-correction model (VECM). The empirical results suggest that there is significant and positive long-run relationship between budget deficit and inflation in Syria, while it does not exist on the short-run.

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How to Cite This Article

Fadia Ibrahim al Bouza and Samir Sharaf. (2018); THE RELATIONSHIP BETWEEN BUDGET DEFICIT AND INFLATION IN SYRIA FOR THE PERIOD (1990-2010)., International Journal of Advanced Research (IJAR), 6 (09), 47-56, ISSN 2320-5407. DOI: https://doi.org/10.21474/IJAR01/7644

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Dr. Samir Sharaf
Tishreen University

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