| The subject of the relationship between state budget and trade balance is important as economic subject, not only at the level of developing countries, but also at of advanced ones, too. Such importance emerged clearly when 1980s witnessed in United States of America a deficit in both state budget and trade balance, which was called at that time as the twin or dual deficit. We can say that the analysis of relationship between state budget and trade balance states the extent of mutual effect between financial and trade policies of any economy, namely; any change in the outcome of either one may affect the other in the same degree. To put in other words, the instruments of financial policy represented by total incomes and total expenditures can affect the... |
