New Evidence on Fiscal Adjustment and Growth in Transition Economies
October 1, 2006
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Summary
This paper analyzes the relationship between fiscal adjustment and real GDP growth in a panel of 26 transition economies during 1992-2001. Unlike most previous studies using cross-country regressions, the paper finds a positive and statistically significant relationship between fiscal adjustment and growth that is robust to different model specifications and estimation methods. The paper also presents country experiences to delve deeper into the mechanisms that may underlie this statistical relationship.
Subject: Fiscal consolidation, Fiscal policy, Fiscal stance, Government debt management, Structural reforms
Keywords: aggregate demand, CIS country, country, deficit, WP
Pages:
33
Volume:
2006
DOI:
Issue:
244
Series:
Working Paper No. 2006/244
Stock No:
WPIEA2006244
ISBN:
9781451865042
ISSN:
1018-5941
