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Fiscal sustainability in selected developing ASEAN economies

Author

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  • Ramkishen S. Rajan
  • Khee Giap Tan
  • Kong Yam Tan

Abstract

This paper undertakes an examination of the fiscal sustainability challenges confronting four developing ASEAN economies since the Asian financial crisis (AFC), namely Malaysia, Thailand, the Philippines and Vietnam. The recovery of these economies since the AFC was marked by impressive fiscal consolidation along with robust growth rates till the global financial crisis struck in 2007. In addition to a case study analysis, the paper provides computations of fiscal sustainability to assess the degree of fiscal space of the four selected developing ASEAN economies. Despite the fact that our fiscal sustainability computations reveal that the developing ASEAN economies have fiscal space, it is important to keep in mind the potential dangers of contingent liabilities that appear to be building up in these economies.

Suggested Citation

  • Ramkishen S. Rajan & Khee Giap Tan & Kong Yam Tan, 2015. "Fiscal sustainability in selected developing ASEAN economies," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 11(4/5/6), pages 186-203.
    • Handle: RePEc:ids:ijpubp:v:11:y:2015:i:4/5/6:p:186-203
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    References listed on IDEAS

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    1. Ouyang, Alice Y. & Rajan, Ramkishen S., 2014. "What determines external debt tipping points?," Journal of Macroeconomics, Elsevier, vol. 39(PA), pages 215-225.
    2. Ramkishen S. Rajan & Tan Khee Giap & Tan Kong Yam, 2014. "Fiscal Sustainability and Competitiveness in Europe and Asia," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-40697-2, December.
    3. Masahiro Kawai & Peter J. Morgan, 2013. "Long-term Issues for Fiscal Sustainability in Emerging Asia," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 9(4), pages 751-770, September.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2010. "Growth in a Time of Debt," American Economic Review, American Economic Association, vol. 100(2), pages 573-578, May.
    5. Ferrarini , Benno & Ramayandi, Arief, 2015. "Public Debt Sustainability in Developing Asia: An Update," ADB Economics Working Paper Series 468, Asian Development Bank.
    6. Jernej Mencinger & Aleksander Aristovnik & Miroslav Verbic, 2014. "The Impact of Growing Public Debt on Economic Growth in the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 403-403, February.
    7. Bart W. Edes & Peter J. Morgan, 2014. "Managing Fiscal Sustainability and Aging in Emerging Asia," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 10(2), pages 319-348, August.
    8. Mencinger, Jernej & Aristovnik, Aleksander, 2013. "Fiscal Policy Stance in the European Union: The Impact of the Euro," MPRA Paper 44708, University Library of Munich, Germany.
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