Is there any method to measure the effect of budget deficit on balance of payment particulary current account?

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Muhammad Saad Baloch

for this you have to take the data of budget deficit and current account balance of payment of at least 30 years and then regress both variables. Make Current account your dependent and budgt deficit your independent. after regression you will see any change in budget deficit how much it affect current account...

Muhammad Jam e Kausar Ali Asghar

Read following papers along with their reference papers for more details...

https://www.google.com.pk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=0CCcQFjAC&url=http%3A%2F%2Femaj.pitt.edu%2Fojs%2Findex.php%2Femaj%2Farticle%2Fdownload%2F52%2F200&ei=JlOYVJ7xJceQuQSHhIKACg&usg=AFQjCNEfxp6qPXjDQsIA9NGMtq3-F5CLLA&bvm=bv.82001339,d.c2E

http://www.sciencedirect.com/science/article/pii/S0022199698000580

Mohammed Seghir Guellil

You can use a this case the cointegration method or ARDL bound and you must apply the granger causality test to know who cause the other ? and you have more method which you may use as neural network.