The study on impact of the budget deficit on the current account in the Southeast – Asia countries

Dao Thong Minh *

* Correspondence: Dao Thong Minh (email: MinhDT@vhu.edu.vn)

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Received: 05 Aug 2017
Revised: 10 Sep 2017
Accepted: 10 Sep 2017
Published: 11 Oct 2017
DOI: 10.58810/vhujs.5.4.2017.5430
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Đào, . T. M. (2017). The study on impact of the budget deficit on the current account in the Southeast – Asia countries. Van Hien University Journal of Science 5(4), 26-35.
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Volume 5 - Issue 4 (2017)
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Abstract

The article is to study on the impact of the budget deficit on the current account in the Southeast-Asia countries. By using the secondary data of Asian Development Bank (ADB) in the 2008-2015 period and statistical method of Generalized Least Squares (GLS) which defines current account as a dependent variable, there are independent variables such as: fiscal balance, government expenditure, economic growth, multilateral exchange rate in turn. The results of the study showed that the government fiscal balance has a positive influence on the current account balance while government expenditure and multilateral exchange rate lead to the reverse effect on the current account balance. Besides, there is no significant relationship between economic growth rate and current account balance in the Southeast Asia countries in the period 2008-2015.
Keywords: budget deficit, current account balance, government fiscal balance, government expenditure

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