Analysis of the relationship between the general budget deficit and the trade balance deficit in Sudan for the period2000-2022 (Testing the Keynesian disability hypothesis and ricardian equivalence)

Abstract

The study aimed to know the internal deficit (the general budget) and its relationship to the external deficit (the trade balance) statistically significant between the general budget deficit and the trade balance deficit in Sudan during the period 2000-2022. There is also a one –way causal relationship that goes from the general budget  deficit to the trade balance in Sudan during the study period . the study used  the descriptive approach  to deficit concepts related to the general budget deficit ,the trade balance and theories .explaining the deficit and the quantitative approach was used to build a standard model the measure and analyze the relationship between the general budget deficit ,and the results of the study  showed matching the Keynesian point of view with the existence of a causal relationship in two directions that goes from the budget deficit to the trade balance deficit and vice  versa , and the rejection of the Ricardian equivalence hypothesis that says there is no relationship between the two deficits.