Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries
IMF Working Papers, December 1, 2001
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- Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries
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Bibliographic details
- Authors: Qing Wang, Ugo Fasano-Filho
- Published: December 1, 2001
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451859911.001
Research question and methodology
- Investigates the short- and long-run relationship between fiscal expenditure policy and non-oil real GDP growth in member countries of the Gulf Cooperation Council (GCC).
- Empirical approach: multivariate cointegration and error-correction model.
- Sample period: the past two decades (as described in the study).
Key findings
- 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.
- Disaggregating total spending into current and capital expenditures provides useful insights for assessing the effects of each spending category on short- and long-run non-oil real GDP growth.
Subjects and keywords (as provided)
- Subjects: 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.
Content in this bundle
- Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries - WP/01/195