New Evidence on Fiscal Adjustment and Growth in Transition Economies
IMF Working Papers, October 1, 2006
Source details
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- New Evidence on Fiscal Adjustment and Growth in Transition Economies
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Bibliographic details
- Authors: Sanjeev Gupta, Alejandro Simone, Alex Segura-Ubiergo
- Published: October 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451865042.001
Overview
- Authors: Sanjeev Gupta, Alejandro Simone, Alex Segura-Ubiergo
- Date: October 1, 2006
- Sample: panel of 26 transition economies during 1992-2001
- Pages: 33
- Series: Working Paper No. 2006/244
- Volume: 2006; Issue: 244
- DOI: https://doi.org/10.5089/9781451865042.001
- ISBN: 9781451865042
- ISSN: 1018-5941
- Subject: Fiscal consolidation; Fiscal policy; Fiscal stance; Government debt management; Structural reforms
- Keywords: aggregate demand; CIS country; country; deficit; WP
Key findings
- The paper finds a positive and statistically significant relationship between fiscal adjustment and real GDP growth in the panel of 26 transition economies during 1992-2001.
- This positive relationship is robust to different model specifications and estimation methods.
- The paper contrasts with most previous studies using cross-country regressions by identifying a growth-enhancing effect of fiscal adjustment in the transition economy sample.
- Country experiences are presented to explore mechanisms that may underlie the statistical relationship between fiscal adjustment and growth.
Empirical approach and scope
- Sample period: 1992-2001.
- Sample size: 26 transition economies.
- Methodology: panel analysis with multiple model specifications and estimation methods (details in full paper).
Implications and mechanisms examined
- The analysis suggests fiscal adjustment can be compatible with, and potentially supportive of, real GDP growth in transition economies.
- Country case material is used to delve deeper into mechanisms linking fiscal adjustment to growth, indicating heterogeneity in experiences across countries.
Publication and access notes
- Publication type: IMF Working Paper.
- Access: available via the IMF eLibrary in multiple formats.
Source: IMF Working Paper "New Evidence on Fiscal Adjustment and Growth in Transition Economies", Sanjeev Gupta, Alejandro Simone, Alex Segura-Ubiergo, October 1, 2006; Working Paper No. 2006/244; DOI: https://doi.org/10.5089/9781451865042.001
Content in this bundle
- _wp06244 - References