Which among twin deficits hypothesis,twin divergence,and Ricardian's equivalence hold in a developing country?

South Africa witnesses the perpetual increase in budget deficit that hampers its ability for inclusive economic growth while on the other hand facing trade balance instability. To realise stability in the economy and sustainable yet inclusive economic growth, the two deficits, namely, budget and trade deficits, should be closely monitored. The study examined the empirical relationship between budget deficit and trade deficit in South Africa in the postapartheid era, employing time series data from 1994 to 2016. The autoregressive distribution lag approach was employed to examine the existence of a cointegration between the set of variables, both in the short‐ and the long‐run relationships and together with the error correction model. It was found that there is a significant and positive relationship between budget deficit and trade deficit in the short run. However, in the long run, the Ricardian's equivalence holds in South Africa. The study recommends that policies aimed at reducing budget and trade deficits should take into account inflation and aim to increase some macroeconomic variables such as fixed investment to ultimately achieve sustainable economic growth.     

The Effects of Changes in Federal Aid on State and Local Government Spending

This study suggests federal grants-in-aid had an important influenceon state and local government spending during the 1960s andmost of the 1970s. This positive stimulation also seems to havecontinued during 1982–1985, despite the Reagan administration'sefforts to cut the level of federal aid to states and communities.The stimulative effect of federal aid, however, was showingsigns of diminishing after 1977 and was conspicuously absentfor the 1977–1981 and 1985–1988 periods.     

The development of Kurdistan’s de facto statehood: Kurdistan’s September 2017 referendum for independence

This research aims to analyse the drivers which informed the decision and timing of Kurdistan’s independence referendum on 25 September 2017. Here we argue that any proper examination of these drivers must begin by investigating the relationship between the fight to counter the Islamic State begun in 2014, the disputes arising as a result of Kurdistan’s presidential election issue in 2015 and the internal political rivalry exacerbated by the question of whether to hold a referendum. The findings of this article highlight the centrality of de facto entities’ internal governance in their struggle towards statehood. The fight against IS served as a primary driver in influencing the timing and the approach of the September 2017 referendum. While the 2015 political deadlock resulting in the illegal extension of Barzani’s presidency was not a determining factor leading to the referendum, nonetheless it quickened the process and influenced the timing.