INTRODUCTIONIn a recent issue of this journal Bahmani-Oskooee and Payesteh (1994) haveshown that in the United States budget deficits led to capital inflows in the 1973-88 period. Using the Engle-Granger (1987) residual-based two-step cointegrationprocedure and error-correction model, they found budget deficits and capitalinflows to be cointegrated. They attributed the relationship between budgetdeficits and capital inflows to risin ...
INTRODUCTIONIn a recent issue of this journal Bahmani-Oskooee and Payesteh (1994) haveshown that in the United States budget deficits led to capital inflows in the 1973-88 period. Using the Engle-Granger (1987) residual-based two-step cointegrationprocedure and error-correction model, they found budget deficits and capitalinflows to be cointegrated. They attributed the relationship between budgetdeficits and capital inflows to risin ...
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