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Transition Economies: How Appropriate is the Size and Scope of Government?

Author

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  • Sanjeev Gupta

    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

  • Luc Leruth

    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

  • Luiz de Mello

    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

  • Shamit Chakravarti

    (Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, DC 20431, USA.)

Abstract

This paper assesses changes in the size and scope of government in 24 transition economies. While these governments have reduced public expenditures in relation to GDP, and public employment as a share of population, some indicators suggest that the size remains high (eg, rising indebtedness, a heavy regulatory burden, arrears, and the prevalence of noncash transactions). At the same time, the scope of government activities – although evolving – has not necessarily become appropriate. This paper provides some recommendations for aligning the scope of government with the increasing market orientation of these economies. Comparative Economic Studies (2003) 45, 554–576. doi:10.1057/palgrave.ces.8100014

Suggested Citation

  • Sanjeev Gupta & Luc Leruth & Luiz de Mello & Shamit Chakravarti, 2003. "Transition Economies: How Appropriate is the Size and Scope of Government?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 45(4), pages 554-576, December.
    • Handle: RePEc:pal:compes:v:45:y:2003:i:4:p:554-576
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    Citations

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    Cited by:

    1. António Afonso & Christiane Nickel & Philipp C. Rother, 2006. "Fiscal Consolidations in the Central and Eastern European Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(2), pages 402-421, July.
    2. Marwa Sahnoun & Chokri Abdennadher, 2020. "Education and Corruption: a Stochastic Frontier Analysis: Evidence from Developed and Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 968-981, September.
    3. Hüseyin Şen & Ayşe Kaya & Ayşegül Durucan, 2023. "New insights into the growth-maximizing size of government: evidence and implications for Turkey," Economic Change and Restructuring, Springer, vol. 56(4), pages 2243-2296, August.
    4. 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.
    5. Nikopour, Hesam & Shah Habibullah, Muzafar, 2010. "Shadow Economy and Poverty," MPRA Paper 23599, University Library of Munich, Germany.
    6. Alam, Asad & Sundberg, Mark, 2002. "A decade of fiscal transition," Policy Research Working Paper Series 2835, The World Bank.
    7. Bekzod ABDULLAEV & Laszlo KONYA, 2014. "Growth Maximizing Tax Rate for Uzbekistan," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 59-72.
    8. Carmignani, Fabrizio, 2008. "The impact of fiscal policy on private consumption and social outcomes in Europe and the CIS," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 575-598, March.
    9. World Bank, 2003. "Serbia and Montenegro : Public Expenditure and Institutional Review, Volume 2. Serbia," World Bank Publications - Reports 14823, The World Bank Group.
    10. Laura Obreja Brasoveanu, 2011. "Composition and Determinants of Fiscal Adjustment’s Success in the EU27 Contex," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 3(2), pages 075-089, December.

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