New Evidence on Fiscal Adjustment and Growth in Transition Economies

BySanjeev Gupta, Alejandro Simone, Alex Segura-Ubiergo

October 1, 2006

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

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:
https://doi.org/10.5089/9781451865042.001
Issue:
244
Series:
Working Paper No. 2006/244
Stock No:
WPIEA2006244
ISBN:
9781451865042
ISSN:
1018-5941

IMF’s Work

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Loading component...

IMF Working Papers