Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries
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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.
Series:
Working Paper No. 2001/195
Subject:
Capital spending Current spending Expenditure Oil prices Prices Total expenditures
English
Publication Date:
December 1, 2001
ISBN/ISSN:
9781451859911/1018-5941
Stock No:
WPIEA1952001
Pages:
21
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