• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.5
• /
• pp.617-626
• /
• 2021

The study examines the existence of twin deficit in two emerging economies (Turkey and Iran) and also investigates the relation of twin deficit with specific macroeconomic indicators such as the GDP, money supply, foreign direct investment, and the interest rate both in short and long-run periods. The twin-deficit concept refers to a situation where the current account deficit and budget deficits exist in the same corresponding period of an economy. This study employs the Bound Test Autoregressive lag distributed (ARDL) model on time-series quarterly secondary data of Turkey and Iran from 1992 to 2019. The stationarity of variables has been ensured through the Augmented Dickey-Fuller (ADF) test at the level and the first difference. The results reveal the existence of a twin deficit in both the short and long-run periods only in Iran. Its existence could not be observed in the Turkish economy. The findings suggest a positive relationship between twin deficit and GDP, and a negative relationship between twin deficit and FDI and M2. At the same time, the relationship of the twin deficit with interest rate could not be found in the Iranian economy. The findings may be helpful for economic managers of both countries in executing their economic policies.

• Asia Pacific Journal of Business Review
• /
• v.1 no.2
• /
• pp.1-16
• /
• 2017

The fundamental goal of the research was to verify if the Twin Deficits Hypothesis holds for the economy of Zambia using time series data from 1980-2014. The current account and budget deficit were employed as key variables. The exchange rate was also used as a transmission mechanism to see how it contributes in the nexus. Cointegration tests confirmed a long run association of the variables. After fitting the VECM model, Granger causality tests confirmed the existence of twin deficits for Zambia. The results supported uni-directional reverse causality. The exchange rate was shown to be more significant in the long run than in the short run. The implosion of the time series as shown by the predicted cointegration equation implies that unless drastic measures are taken to cure the deficits, using the current account as the major target variable, twin deficits will persist for some time. The major policy implication of this research is that given that Zambia is a primary commodity-dependent developing country subsisting largely on copper revenues to sustain the economy, there is a need to move away from "copper addiction," given the recent volatility of earnings of primary commodities (e.g. through diversification of the economy, import substitution, and other strategies).

• Proceedings of the KSME Conference
• /
• 2001.06e
• /
• pp.247-252
• /
• 2001

The flow around free end of a finite circular cylinder(FC) embedded in an atmospheric boundary layer has been investigated experimentally. The experiments were carried out in a closed-return type subsonic wind tunnel with varying aspect ratio of the finite cylinder mounted vertically on a flat plate. The wake structures behind a 2-D cylinder and a finite cylinder located in a uniform flow were also measured for comparison. Reynolds number based on the cylinder diameter was about Re=20,000. A hot-wire anemometer was employed to measure the wake velocity and the mean pressure distributions on the cylinder surface were also measured. The flow past the FC free end shows a complicated three-dimensional wake structure and flow phenomenon is quite different from that of 2-D cylinder. The three-dimensional flow structure was attributed to the downwashing counter rotating vortices separated from the FC free end. As the FC aspect ratio decreases, the vortex shedding frequency is decreased and the vortex formation length is increased compared to that of 2-D cylinder. Due to the descending counter-rotating twin-vortex, in the region near the FC free end, regular vortex shedding from the cylinder is suppressed and the vortex formation region is hardly established. In the wake center region, the mean velocity for the FC located in atmospheric boundary layer has large velocity deficit, compared to that of uniform flow.

• Transactions of the Korean Society of Mechanical Engineers B
• /
• v.25 no.12
• /
• pp.1821-1830
• /
• 2001

The flow around free end of a finite circular cylinder (FC) embedded in an atmospheric boundary layer has been investigated experimentally. The experiments were carried out in a closed-return type subsonic wind tunnel with varying aspect ratio of the finite cylinder mounted vertically on a flat plate. The wakes behind a 2-D cylinder and a finite cylinder located in a uniform flow were measured for comparison. Reynolds number based on the cylinder diameter was about Re=20,000. A hot-wire anemometer was employed to measure the wake velocity and the mean pressure distributions on the cylinder surface were also measured. The flow past the FC free end shows a complicated three-dimensional wake structure and flow phenomenon is quite different from that of 2-D cylinder. The three-dimensional flow structure was attributed to the downwashing counter rotating vortices separated from the FC free end. As the FC aspect ratio decreases, the vortex shedding frequency decreases and the vortex formation length increases compared to that of 2-D cylinder. Due to the descending counter-rotating twin-vortex, near the FC free end, regular vortex shedding from the cylinder is suppressed and the vortex formation region is hardly distinguished. Around the center of the wake, the mean velocity for the FC located in atmospheric boundary layer has large velocity deficit compared to that of uniform flow.