Fiscal Expenditure Policy and Non-Oil Economic Growth : Evidence from GCC Countries

Author/Editor:

Qing Wang ; Ugo Fasano-Filho

Publication Date:

December 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Through the use of a multivariate cointegration and error-correction model, this study investigates the short- and long-run relationship over the past two decades between fiscal expenditure policy and non?oil real GDP growth in member countries of the Gulf Cooperation Council (GCC). Despite the important role of the government, the empirical results do not strongly support that increases in fiscal expenditures tend to slow or accelerate non?oil real growth in these countries. However, the breakdown into current and capital expenditures is useful for assessing the effects of each spending category on short- and long-run non?oil real GDP growth.

Series:

Working Paper No. 01/195

Subject:

English

Publication Date:

December 1, 2001

ISBN/ISSN:

9781451859911/1018-5941

Stock No:

WPIEA1952001

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

21

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