Impact of Government Expenditure on Growth: The Case of Azerbaijan
May 1, 2008
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Summary
This paper evaluates a fiscal scenario based on the assumption of a rapid scaling-up of expenditure to be followed by a rapid scaling-down in the context of Azerbaijan's current temporary oil production boom. To this end, it relies on a review of historical precedents and a neoclassical growth model. Based on both strands of analysis, the paper suggests that the evaluated fiscal scenario poses significant risks to growth sustainability.
Subject: Capital spending, Expenditure, Oil production, Oil, gas and mining taxes, Public investment spending
Keywords: Azerbaijan, GDP, growth spurt, reduction strategy, WP
Pages:
18
Volume:
2008
DOI:
Issue:
115
Series:
Working Paper No. 2008/115
Stock No:
WPIEA2008115
ISBN:
9781451869750
ISSN:
1018-5941
