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Full-Text Articles in International Economics

The Trade Impact Of Economic Integration Agreements, Byungyul Park, John C. Beghin Feb 2023

The Trade Impact Of Economic Integration Agreements, Byungyul Park, John C. Beghin

Cornhusker Economics

A year ago, Cornhusker Economics reported on the substantial trade integration that has been taking place globally in recent decades (see Beghin, 2022). With this proliferation of Economic Integration Agreements (EIAs) through regional and bilateral trade agreements and customs unions since the 1990s, many economists have investigated the effect of these agreements on merchandise trade. Early investigations struggled to find robust findings. They reached two opposite conclusions, with an eventual rejoinder on their limitations. Some investigations found statistically insignificant or negligible effects of EIAs on trade flows. Other investigations found significant effects, sometimes negative, of EIAs on trade. See Park …


How Effective Are The Russian Sanctions?, Wesley Peterson Nov 2022

How Effective Are The Russian Sanctions?, Wesley Peterson

Cornhusker Economics

Russia's invasion of Ukraine has led to extensive economic, financial, trade, and other types of sanctions directed at individual Russians and the Russian economy. The long-term negative effects of the war on the Russian economy may be even more severe and the broader impacts of the conflict mean that it will have serious repercussions for future global economic, political, and diplomatic relations.


The Storm In World Fertilizer Markets Continues, John C. Beghin Sep 2022

The Storm In World Fertilizer Markets Continues, John C. Beghin

Cornhusker Economics

This article updates the recent article on world fertilizer markets by Beghin and Nogueira (2021), which noted the perfect storm affecting global fertilizer markets through high demand, droughts affecting fertilizer supply, high fossil energy prices, COVID 19-related supply-chain disruptions, and trade policies, all conspiring to elevate fertilizer nominal prices to levels not seen since 2008. In the last 10 months, the Ukraine-Russia war and associated trade sanctions have exacerbated the disruptions in fossil energy, grain, vegetable oil, and fertilizer markets already present in 2021. On the more hopeful side, some United States trade policy developments will help reduce US fertilizer …


The Impact Of Afghan Opium Cultivation On The U.S. Opioid Epidemic, Zachary Wahab Cheek Apr 2022

The Impact Of Afghan Opium Cultivation On The U.S. Opioid Epidemic, Zachary Wahab Cheek

UNL Student Research Days Posters, Undergraduate

I argue here that increases in Afghan opium cultivation, the most prolific in the world, has depressed American prescription opioid and heroin prices, thereby increasing abuse risk in U.S. addict populations and increasing death rates. Utilizing a two-stage regression model with a sparse dataset from several national and international sources, I find evidence that a one percent increase in Afghan opium production is associated with a 0.122 percent increase in prescription opioid overdose deaths, and a 0.367 percent increase in heroin overdose deaths. Assessing the 2001-2002 Taliban opium ban with an identification strategy, I find that in this timeframe prescription …


Effect Of Health Aid On Life Expectancy In Sub-Saharan Africa, Sakiru Oladele Akinbode Dr., Isiaq O. Oseni Jan 2022

Effect Of Health Aid On Life Expectancy In Sub-Saharan Africa, Sakiru Oladele Akinbode Dr., Isiaq O. Oseni

Journal for the Advancement of Developing Economies

No abstract provided.


Islamic Bank Amid The 2008 Global Financial Crisis: A Bibliometric Analysis, Maulidar -. Agustina Ms., M. Shabri -. Abd. Majid Prof. Dr., Hafasnuddin -. Hafasnuddin Dr. Jul 2021

Islamic Bank Amid The 2008 Global Financial Crisis: A Bibliometric Analysis, Maulidar -. Agustina Ms., M. Shabri -. Abd. Majid Prof. Dr., Hafasnuddin -. Hafasnuddin Dr.

Library Philosophy and Practice (e-journal)

This study aims to provide a bibliometric and science mapping analysis on the research area of Islamic banks and the 2008 global financial crisis published in the Scopus indexed database over the 2008-2021 period. The study used the VOSviewer software and MS Excel spreadsheet for data analysis. The study identified an increasing trend in publication on the topic. The study found that Alqahtani was the most productive author, while Bourkhis and Nabi were the highly cited authors. The authors from Malaysia were the productive publication, while the Journal of Islamic and Middle Eastern Finance and Management was found to be …


Profit Efficiency Analysis Of Cassava Production In Enugu State, Nigeria, Oguejiofor J. Okorie, Ubokudom E. Okon, Anselm A. Enete Jan 2021

Profit Efficiency Analysis Of Cassava Production In Enugu State, Nigeria, Oguejiofor J. Okorie, Ubokudom E. Okon, Anselm A. Enete

Journal for the Advancement of Developing Economies

This study analyzed the profit efficiency of smallholder cassava farmers in Enugu state, Nigeria. The study employed a multi-stage random sampling technique in selecting 240 cassava farm households who are registered in the Enugu State Fadama III project during the 2019 farming season. Data were collected using copies of structured questionnaire and interview schedule. Collected data were analyzed using descriptive and inferential statistics (stochastic frontier profit function model). Results showed that the majority (73.3%) of the household heads were male, with a mean age of 52 years. Additionally, the majority (78.5%) of the respondents were married, mean farm size of …


The Effects Of Tax Policies On Entrepreneurship In Emerging Versus Mature Economies: Do Differences Exist Between Nascent And Established Firms?, Benjamin B. Boozer, Taleah H. Collum Jan 2021

The Effects Of Tax Policies On Entrepreneurship In Emerging Versus Mature Economies: Do Differences Exist Between Nascent And Established Firms?, Benjamin B. Boozer, Taleah H. Collum

Journal for the Advancement of Developing Economies

An extensive body of research defines various levels of entrepreneurship and considers emerging trends. This study uses data from Global Entrepreneurship Monitor (GEM) in developing a model that measures the impact of taxes and bureaucracy on entrepreneurship. The analysis considers effects by type of firm – nascent and established – and type of economy – emerging and mature. The aim of the manuscript is to test directional impact of tax policies on entrepreneurial activity. The model utilizes counter and dichotomous variables to measure effects before, during, and after the 2008-2009 Financial Crisis. Tax policies adversely impact both nascent and established …


Export Promotion As A Development Strategy: Evidence From Selected Southeast Asian Countries And Lessons For Ghana, Ohenewaa B. Newman Jan 2021

Export Promotion As A Development Strategy: Evidence From Selected Southeast Asian Countries And Lessons For Ghana, Ohenewaa B. Newman

Journal for the Advancement of Developing Economies

Developing countries have adopted various development strategies such as import substitution industrialization (ISI) and export promotion strategies. For Latin-American and developing countries, some level of economic growth was experienced using ISI after the Second World War. However, these countries could not attain the needed economic growth, technological advancement or guarantee food security with the adoption of ISI. It led to unequal income distribution, less internal competition, and distortions of their economy, among others. The rise of export promotion strategies in the 1970s was evidenced by an impressive economic growth and a decline in poverty in jurisdictions like Taiwan, Tanzania and …


Integration Of And Deliveries Among The World Zionist Organization, Israel, And Diaspora Countries: System Articulation With The Social Fabric Matrix, F. Gregory Hayden Mar 2020

Integration Of And Deliveries Among The World Zionist Organization, Israel, And Diaspora Countries: System Articulation With The Social Fabric Matrix, F. Gregory Hayden

Department of Economics: Faculty Publications

The religious economics (not economics of religion) concern here is the relationship between the World Zionist Organization (WZO) and Israel, which is known as a geopolitical power in its region and which is also known as an economic success story. Joseph Schumpeter and Karl Polanyi explained how the political economy of medieval Europe was influenced and guided by Christian morality. This paper extends the analysis of religious economics by using the social fabric matrix of original institutional economics to define and structure the integration of the WZO, Israel, and the Diaspora countries. This allows us to observe how to conduct …


Corruption, Government Effectiveness And Human Development In Sub-Saharan Africa, Sakiru O. Akinbode, Jayeola Olabisi, Remilekun R. Adegbite, Timothy A. Aderemi, Abimbola M. Alawode Jan 2020

Corruption, Government Effectiveness And Human Development In Sub-Saharan Africa, Sakiru O. Akinbode, Jayeola Olabisi, Remilekun R. Adegbite, Timothy A. Aderemi, Abimbola M. Alawode

Journal for the Advancement of Developing Economies

Aside economic factors causing low human development which have been extensively studied in literature, the implications of high level of corruption and weak governance prevalent in sub- Saharan African (SSA) countries have not been explored. The study assessed the effects of corruption, government effectiveness and their joint effect on human development in SSA. Data collected on thirty-seven (37) countries within the period of 2005 to 2018 were analyzed using system Generalized Method of Moment which was most suitable for the dataset. Results indicated that lagged human development index (P<0.01), government effectiveness (P<0.05), economic growth rate (P<0.1) and government health spending (P<0.1) had significant positive effect on human development while corruption and its interaction with government effectiveness did not. The results of Arrelano-Bond test of first order autocorrelation and second order autocorrelation of error term as well as the Sargan test and Hansen J test for validity of instrumental variables confirmed the validity of the model. The robustness of the estimation was established as the coefficient of the lagged dependent variable fell between the values in the fixed effect and pooled ordinary least square regression. The study recommended retraining and reorientation of government employees towards the mindset of effective service delivery and strong political will to achieve it, diversification of SSA economies alongside other growth stimulating policies such as reduced lending interest rate on loans meant for the real sector, improvement in the ease of doing business, improved funding of the health sector and proper monitoring of activities in the public service by concerned agencies to curb corruption where it is present.


The Desire For Luxury In Emerging Markets: An Interactional Perspective On Consumer Motivations In Tunisia, Pranjal Gupta,, Mouna Zaghdoudi Jan 2020

The Desire For Luxury In Emerging Markets: An Interactional Perspective On Consumer Motivations In Tunisia, Pranjal Gupta,, Mouna Zaghdoudi

Journal for the Advancement of Developing Economies

The motivations underlying the desire for luxury products and services have long been the subject of academic inquiry. An understanding of these motivations is useful for the luxury market industry to help managers formulate better marketing strategies. Further, such knowledge would also be useful to public policy makers to help them mitigate societal problems that may occur as a result of such consumption. Of particular interest is the growth of the luxury market in emerging economies. This study spotlights the luxury market in Tunisia. Previous work has demonstrated that age has a significant impact both on willingness to buy luxury …


Homeownership Rate And Other House Price Determinants Impacts On New House Prices In Colombia, Hector A. Botello-Peñaloza Jan 2020

Homeownership Rate And Other House Price Determinants Impacts On New House Prices In Colombia, Hector A. Botello-Peñaloza

Journal for the Advancement of Developing Economies

Homeownership remains a preferred form of tenancy in different parts of the world. The attractions of security, stability, investment potential and a sense of pride outweigh the fear of price instability. For this reason, the Colombian government has encouraged in recent years, various demand policies that have sought to promote the increase in the number of homeowners. However, these ideas could have a severe impact on prices in the real estate market. Therefore, this study seeks to examine the effect of homeownership rate on new house prices in an emerging country with low real estate ownership, credit restrictions and average …


Celtic Tiger Ireland As A Case Study In The Practical Application Of Neoliberal Economic Policy, Natalie Sneed Mar 2019

Celtic Tiger Ireland As A Case Study In The Practical Application Of Neoliberal Economic Policy, Natalie Sneed

Honors Theses

The Celtic Tiger economic boom, which occurred in Ireland from approximately 1987 to 2009 has generally been considered one of the most remarkable economic turnarounds in any country in the modern era. My purpose in this project was to identify the primary causes and effects of such rapid and dramatic economic growth and development to determine whether it is sensible for other countries emerging from colonial rule to seek to emulate the Irish economic model. Through a review of the economic literature on the Irish economy in the last three decades, I identify Ireland’s implementation of a neoliberal economic policy …


All For One Or Each For Her Own: Do Polygamous Families Share And Share Alike?, Kristin Mammen Jan 2019

All For One Or Each For Her Own: Do Polygamous Families Share And Share Alike?, Kristin Mammen

Journal for the Advancement of Developing Economies

This paper examines whether the mother’s rank (whether she is a senior or junior wife) in polygamous households in Côte d’Ivoire injects favoritism that could lead to differential investment in children (based on mother’s rank), a concern that could cause an inefficient allocation of household resources. The hypothesis is that the younger is a junior wife relative to the senior wife, the greater favoritism she will receive from the husband, and the better her children will fare. This question is analyzed employing Ordinary Least Squares on a Living Standards Measurement Survey microdataset collected by the World Bank. An interesting pattern …


A Mobile Solution To Drug Prescription And Dispensation With Privacy Protection For Developing Economies, Kingsley C. Nwosu Jan 2019

A Mobile Solution To Drug Prescription And Dispensation With Privacy Protection For Developing Economies, Kingsley C. Nwosu

Journal for the Advancement of Developing Economies

It is unarguable that many countries within the developing economies have not been able to reap many of the benefits from the innovations in Computer and Information Technologies (CIT) as they pertain to the advances in healthcare delivery systems. The contributing factors to the problems in these countries are multifaceted, such as, ethnic, cultural, environmental, governance, and infrastructural. To address these problems, current efforts have focused mostly on the issues of disease control and management. However, insufficient attention has been given to the concomitant problems of medication (drug / prescription) management especially as they relate to information management between patients, …


Determinants Of Cost Of Treating Water-Borne Diseases Among Rural Households In South West Nigeria, Alaba M. Dare, Idris A. Ayinde, Adebayo M. Shittu, Sammy O. Sam-Wobo, Sakiru O. Akinbode Jan 2019

Determinants Of Cost Of Treating Water-Borne Diseases Among Rural Households In South West Nigeria, Alaba M. Dare, Idris A. Ayinde, Adebayo M. Shittu, Sammy O. Sam-Wobo, Sakiru O. Akinbode

Journal for the Advancement of Developing Economies

This study determined the factors that influence the economic burden of water-borne diseases and the associated financial cost for rural households in southwestern Nigeria. A multi-stage random sampling method was used to select four hundred and thirty-seven rural households from whom data were collected for the study. Data were analyzed using descriptive statistics and cost of illness approach. The results revealed that an average household had six members with an average quarterly income of N80,717.52 (N160.00 = 1US dollar, at time of study). The sum of N28,571.36 was incurred as economic cost of water-borne diseases per household per quarter in …


Credit Constraints And Agricultural Productivity Of Rural Households In Nigeria, Olugbenga K. Omolade, Abimbola O. Adepoju Jan 2019

Credit Constraints And Agricultural Productivity Of Rural Households In Nigeria, Olugbenga K. Omolade, Abimbola O. Adepoju

Journal for the Advancement of Developing Economies

This study, employing descriptive statistics and the Endogenous Switching Model, examined the link between credit constrained condition and agricultural productivity of rural households in Nigeria. Findings show that under credit constrained condition, education, labour, technology and other production inputs were not optimally utilized by the households. Credit constrained households had lower productivity than a random household from the sample would have had. However, in credit constrained households, being a male-headed household implied higher productivity. On the other hand, high value of assets and cost of hired labour had negative effects on productivity, while level of education and access to information …


Food Insecurity In Urban Slums: Evidence From Ibadan Metropolis, Southwest Nigeria, Oluwakemi A. Obayelu Jan 2018

Food Insecurity In Urban Slums: Evidence From Ibadan Metropolis, Southwest Nigeria, Oluwakemi A. Obayelu

Journal for the Advancement of Developing Economies

Food insecurity is a major challenge among the urban poor who reside mainly in slums. The prevalence and determinants of food insecurity among households living in urban slums of Ibadan, Nigeria were therefore assessed. Data were analyzed using descriptive statistics and ordered probit model. Food insecurity was found to be prevalent among the slum residents, with about 81% being food insecure. Nine out of every 10 (89.1%) households were male-headed. The largest proportion of the mildly food insecure (37%) household heads were less than 30 years old, while the largest proportion of moderately food insecure (45%) and severely food insecure …


Drivers Of Agricultural Productivity In Agriculture-Based Economy, Olatokunbo H. Osinowo, Rahman A. Sanusi Jan 2018

Drivers Of Agricultural Productivity In Agriculture-Based Economy, Olatokunbo H. Osinowo, Rahman A. Sanusi

Journal for the Advancement of Developing Economies

Stagnation in agricultural productivity, especially in an economy with fast and persistently growing population, would compromise food security. This study examined the factors influencing agricultural productivity in an agriculture-based economy. The study used a 35-year period (1980 – 2014) panel data focusing on Agricultural Productivity (AP), Real Gross Domestic Product (GDP), Government Agricultural Expenditure (EXP), Agricultural Trade Barrier (ATB), Consumer Price Index (CPI), Farm Machinery (MACH), Fertilizer Consumption (FERT), Human Capital (HCAP) and Irrigation (IRRG). Data were analyzed using Impulse Response Function (IRF) and Panel Least Squares (PLS) regression technique. The IRF revealed that there was a positive and stable …


Educational Expenditure And Economic Growth Nexus In Nigeria (1987-2016), Abiodun O. Ayeni, Osagie F. Omobude Jan 2018

Educational Expenditure And Economic Growth Nexus In Nigeria (1987-2016), Abiodun O. Ayeni, Osagie F. Omobude

Journal for the Advancement of Developing Economies

This study empirically investigated educational expenditure and economic growth nexus in Nigeria using secondary and times series data from 1987 to 2016, sourced from the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and other agencies and sources. Relevant statistical tools were employed in exploring the relationships between these variables. The random characteristics of the variables were tested using the Augmented Dickey Fuller (ADF) technique. The links among educational expenditure, education sectoral output and economic growth were tested via the Autoregressive Distributed Lag (ARDL) and bound test approach developed by Pesaran and Shin. Four research hypotheses were tested. …


Mortgage Finance Market And Housing Affordability In Urban Areas In Rwanda: A Case Of Kigali City, Samuel Iyandemye, Jonas Barayandema, Faustin Gasheja Jan 2018

Mortgage Finance Market And Housing Affordability In Urban Areas In Rwanda: A Case Of Kigali City, Samuel Iyandemye, Jonas Barayandema, Faustin Gasheja

Journal for the Advancement of Developing Economies

Rapid urbanization in Rwanda has considerably increased housing demand and the need for a dependable mortgage market. Unfortunately, the capacity of most people to afford to own homes from their own incomes is still a challenge as mortgages products are available at outrageous conditions making mortgage finance unaffordable. For better market readjustment, the effects or mortgage market factors on housing affordability in any locality should be properly evaluated. The objective of this study is to determine how mortgage finance market affects the affordability of housing in Kigali, the capital city of Rwanda. To attain this objective, data was obtained from …


Remittances, Institutions, And Inequality In Developing Countries, Karla Borja, Joshua D. Hall Jan 2018

Remittances, Institutions, And Inequality In Developing Countries, Karla Borja, Joshua D. Hall

Journal for the Advancement of Developing Economies

The private transfers sent by immigrant workers back to their home countries, or remittances, can improve the development of recipient countries through poverty reduction, higher education, and new business formation. However, the effect of remittances on income inequality is still debatable. While some studies suggest that these transfers are sent to the poor, other investigations find that remittances are directed toward higher-income cohorts, widening the gap between rich and poor. This study provides new evidence about potential income inequality reduction driven by remittances and quality of institutions. For instance, weak institutions discourage the usage of remittances toward productive ventures, more …


Land Tenure, Governance And Accountability In Nigeria: The Implications On Food Production To Feed The Present And The Future, Abiodun E. Obayelu, Aisha O. Arowolo, Olatokunbo H. Osinowo Jan 2017

Land Tenure, Governance And Accountability In Nigeria: The Implications On Food Production To Feed The Present And The Future, Abiodun E. Obayelu, Aisha O. Arowolo, Olatokunbo H. Osinowo

Journal for the Advancement of Developing Economies

Land is very vital for agricultural production, and for any nation that wants to be self-food sufficient. Different land reforms have taken place in Nigeria since 1960 with the aim of facilitating access to agricultural land, and make the nation self-sufficient in food production, but little changes have only been recorded. Bureaucracy by approving authorities in practice in communities where land is situated still hinders land acquisition for agricultural investment. This study therefore analyzes land policy, governance and accountability and draw out some implications on food production in Nigeria. The percentage of arable land to the total land area was …


Internal Control Activities As A Tool For Financial Management In The Public Sector: A Case Study Of Ghana Post Company Limited, Kwakye E. Agyapong Jan 2017

Internal Control Activities As A Tool For Financial Management In The Public Sector: A Case Study Of Ghana Post Company Limited, Kwakye E. Agyapong

Journal for the Advancement of Developing Economies

The case, Ghana Post Company Limited, allows for the observation of internal control activities as a tool for financial management in the public sector. The objective of the research is to examine the control environment of the Ghana Post Company to ensure there is segregation of duties, proper information and communication between employees and management; and monitoring of the policies implemented by management. The sample size of 36 included individuals from all of the departments within the company. The departments are Auditing and Finance, Human Resource, Mail and Parcels, and Financial Services. The work established had continued lapses in the …


Evaluation Of Monetary, Fiscal And External Inflationary Sources In Nigeria, Samson A. Aladejare Jan 2017

Evaluation Of Monetary, Fiscal And External Inflationary Sources In Nigeria, Samson A. Aladejare

Journal for the Advancement of Developing Economies

This study focuses on evaluating the monetary, fiscal and external inflationary sources in Nigeria. The Auto-Regressive Distributive Lag estimation technique was adapted to capture these effects. Empirical findings of the study showed that overall, the main determining cause of inflation in both short run and long run periods in Nigeria, are more of monetary and external factors and less of fiscal sources. Specifically, the problem of inflation in Nigeria appears to be more of structural phenomenon than monetary in the short run. However, in the long run, combinations of monetary and external factors tend to be the major cause of …


Mobile Facial Recognition System For Patient Identification In Medical Emergencies For Developing Economies, Kingsley C. Nwosu Jan 2016

Mobile Facial Recognition System For Patient Identification In Medical Emergencies For Developing Economies, Kingsley C. Nwosu

Journal for the Advancement of Developing Economies

Medical emergencies are part of the common daily lives of people in developing and under-developed economies. Frequently, some of these medical emergencies end up tragically for many people in these countries due to many reasons, among which is the delivery of medical treatment when the patient is uncommunicative or unresponsive. The ability of the attending medical personnel to access a patient’s medical history is critical for the quality of the treatment rendered. Unfortunately, today many lives are lost in low income economies during medical emergencies due to lack or inaccessibility of a patient’s medical information. One of the major contributing …


Barriers To Prevention In Dengue Fever In Pakistan, Khyber Pakhtunkhwa, Swat District, Abdul Zahir, Assad Ullah, Mussawar Shah, Arsalan Mussawar Jan 2016

Barriers To Prevention In Dengue Fever In Pakistan, Khyber Pakhtunkhwa, Swat District, Abdul Zahir, Assad Ullah, Mussawar Shah, Arsalan Mussawar

Journal for the Advancement of Developing Economies

The main aim of this study was to find out the barriers in dengue prevention in the Swat District of Khyber Pkhtunkhwa Province, Pakistan. A sample size of 354 respondents were proportionally allocated to each Mahallah or street (Tahir Abad, Angaro Dheri, Usman Abad and Banr) and then randomly selected. The association of the independent variable (barriers to prevention) and dependent variables (practices for control) were tested by using a Chi Square test. The perception about barriers in dengue prevention shows that a highly significant association was found between practices for control and access to medical facilities (p=0.034), government agencies …


Challenges Of Respecting Riparian Rights Around Hydroelectric Dams In Cameroon Since 1949, Séverin Nwaha Jan 2016

Challenges Of Respecting Riparian Rights Around Hydroelectric Dams In Cameroon Since 1949, Séverin Nwaha

Journal for the Advancement of Developing Economies

The impact of electric energy on socio-economic development has attracted the attention of all categories of people in society. This is because of the role power plays in the economic and industrial sectors of any country. Public authorities seem to be more concerned with protecting capitalist interests at the detriment of the riparian population. Despite regulations and legal provisions, authorities are still not able to implement a rigorous policy in this sector in Cameroon due to administrative bottle necks, among other factors. Furthermore, the existence of multiple regulatory and management bodies creates confusion. Legislation related to this issue is usually …


Exploring The Budget Deficit-Economic Growth Nexus: New Evidence From Ghana, Kojo Oppong Nkrumah, Emmanuel Orkoh, Augustine Mensah Owusu Jan 2016

Exploring The Budget Deficit-Economic Growth Nexus: New Evidence From Ghana, Kojo Oppong Nkrumah, Emmanuel Orkoh, Augustine Mensah Owusu

Journal for the Advancement of Developing Economies

In this paper, we combine Autoregressive Distributed Lag (ARDL) approach with trend analysis to assess the relationship between Ghana’s budget deficit and economic growth from 2000 to 2015 using quarterly data. The trend analysis reveals that since 2000, years of high budget deficit were usually followed by years of low economic growth and vice versa. This phenomenon was pronounced in 2009, when the Gross Domestic Product (GDP) growth rate fell from 7.3 percent in 2008 to 4 percent in 2009, following an increase in the budget deficit from 8 percent in 2007 to 11.5 percent in 2008. The same phenomenon …