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New Evidence on Fiscal Adjustment and Growth in Transition Economies

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Author Info
Alejandro Simone
Alex Segura-Ubiergo
Sanjeev Gupta
Abstract

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.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/244.

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Length: 33 pages
Date of creation: 31 Oct 2006
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Handle: RePEc:imf:imfwpa:06/244

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Related research
Keywords: Fiscal adjustment ; growth ; transition economies ; fiscal policy ; Adjustment process ; Transition economies ; Economic stabilization ; Fiscal policy ; Economic growth ;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Richard Hughes & Alejandro Hajdenberg & Teresa Ter-Minassian, 2008. "Creating Sustainable Fiscal Space for Infrastructure: The Case of Tanzania," IMF Working Papers 08/256, International Monetary Fund. [Downloadable!]
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