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New Evidence on Fiscal Adjustment and Growth in Transition Economies

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Listed:
  • Mr. Sanjeev Gupta
  • Mr. Alejandro Simone
  • Mr. Alex Segura-Ubiergo

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.

Suggested Citation

  • Mr. Sanjeev Gupta & Mr. Alejandro Simone & Mr. Alex Segura-Ubiergo, 2006. "New Evidence on Fiscal Adjustment and Growth in Transition Economies," IMF Working Papers 2006/244, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/244
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    2. World Bank, 2011. "Republic of Tajikistan - Country Economic Memorandum : Tajikistan’s Quest for Growth: Stimulating Private Investment," World Bank Publications - Reports 2761, The World Bank Group.
    3. Brownbridge, Martin & Canagarajah, Sudharshan, 2008. "Fiscal policy for growth and development in Tajikistan," Policy Research Working Paper Series 4532, The World Bank.
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    7. Mrs. Teresa Ter-Minassian & Richard Hughes & Alejandro Hajdenberg, 2008. "Creating Sustainable Fiscal Space for Infrastructure: The Case of Tanzania," IMF Working Papers 2008/256, International Monetary Fund.
    8. Laura Obreja Braşoveanu, 2012. "Correlation Between Government and Economic Growth - Specific Features for 10 Nms," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(5), pages 1-14, October.

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