Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries
December 1, 2001
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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.
Subject: Capital spending, Current spending, Expenditure, Oil prices, Prices, Total expenditures
Keywords: Capital spending, Current spending, fiscal policy, GCC countries, GCC countries in the sample, GCC country, GCC government, Global, government capital, government expenditure, government policy, government saving, government size, non-oil real growth, Oil prices, Total expenditures, WP
Pages:
21
Volume:
2001
DOI:
Issue:
195
Series:
Working Paper No. 2001/195
Stock No:
WPIEA1952001
ISBN:
9781451859911
ISSN:
1018-5941
