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Fiscal sustainability in a panel of Asian countries

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  • Olumuyiwa Adedeji
  • John Thornton

Abstract

Panel cointegration techniques indicate that government revenue (REV) and expenditure (EXP) in a panel of five Asian economies for the period 1974 to 2001 were nonstationary and cointegrated series. However, the cointegration coefficient was significantly less than unity, indicating 'weak' fiscal sustainability and the likelihood that policy measures would be needed to put the public finances on a more sustainable basis.

Suggested Citation

  • Olumuyiwa Adedeji & John Thornton, 2010. "Fiscal sustainability in a panel of Asian countries," Applied Economics Letters, Taylor & Francis Journals, vol. 17(7), pages 711-715.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:7:p:711-715
    DOI: 10.1080/13504850802297871
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    Cited by:

    1. Chow, Sheung Chi, 2013. "The sustainability of fiscal policy: A group-mean panel estimator approach," MPRA Paper 57808, University Library of Munich, Germany.
    2. Munawar-Shah, Syed & Abdul-Majid, Mariani & Hussain-Shah, Syed, 2014. "Assessing Fiscal Sustainability for SAARC and IMT-GT Countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(2), pages 26-40.
    3. Paul Alagidede & George Tweneboah, 2015. "On the Sustainability and Synchronization of Fiscal Policy in Latin America," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 52(2), pages 213-240, November.

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