Hatemi-J, AbdulnasserShukur, Ghazi2011-02-152011-02-152000-01-010349-8034http://hdl.handle.net/2077/24449This paper provides an alternative methodology for testing the causality direction between Twin deficits in the US. Rao' s multivariate F -test combined with bootstraps simulation technique has appealing properties, especially when the data generating process is characterised by unit roots. In addition the results show that the effect of structural breaks are of paramount importance when the causality tests are conducted.20engBootstrap SimulationMultivariate testsTwin deficitsGranger causalityStructural breaksText