Budget deficit and inflation in Tanzania: ARDL bound test approach

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dc.contributor.authorMyovella, Godwin Aloyce
dc.contributor.authorKisava, Zakayo Samson
dc.date.accessioned2024-08-16T07:03:02Z
dc.date.available2024-08-16T07:03:02Z
dc.date.issued2018-03-30
dc.descriptionFull text Article, Also available at https://doi.org/10.17261/Pressacademia.2018.797
dc.description.abstractThe study aimed at analyzing the existence of the long run relationship between the government budget deficits and inflation in Tanzania. We used annual time series data for the budget deficit and inflation from 1970 to 2015 sourced from International Monetary Fund (IMF) database. Autoregressive Distributed Lag (ARDL) bound test approach Pesaran and Shin (2001) was used. Our results revealed the positive relationship and existence of the long-run relationship between budget deficits and inflation. The coefficient of the speed of adjustment is significant at 5 percent; the whole system can get back to the equilibrium at the speed of adjustment of 72% towards a long run. We suggest the government to adopt measures that would reduce the large budget deficit that has been growing over time. This would be one of the necessary conditions in reducing inflation over time and thereby the high economic growth witnessed can be sustainable.
dc.identifier.citationMyovella, G. A., & Kisava, Z. S. (2018). Budget deficit and inflation in Tanzania: ARDL bound test approach. Journal of Business Economics and Finance, 7(1), 83-88.
dc.identifier.doi10.17261/pressacademia.2018.797
dc.identifier.otherURL: https://dergipark.org.tr/en/pub/jbef/issue/36448/412878
dc.identifier.otherDOI: https://doi.org/10.17261/Pressacademia.2018.797
dc.identifier.urihttps://repository.udom.ac.tz/handle/20.500.12661/4563
dc.language.isoen
dc.publisherPressacademia
dc.relation.ispartofPressacademia
dc.subjectARDL model
dc.subjectBudget deficit
dc.subjectInflation
dc.subjectLong run
dc.subjectBudget inflation
dc.subjectPoor budget
dc.titleBudget deficit and inflation in Tanzania: ARDL bound test approach
dc.typejournal-article
oaire.citation.issue1
oaire.citation.volume7
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