The Impact of Financial and Fiscal Variables on Economic Growth: The Case of India and Korea
This paper applies a simple macroeconomic model developed by Green and Murinde (1993) to Korea and India and studies the potency of fiscal and financial policies. The fiscal variables are real government spending, the income tax rate, and the export tax rate; while financial policy variables are the official interest rate, loans from commercial banks, foreign reserves or the exchange rate and foreign capital inflows. Dummies for political instability and financial reforms specific to the two countries are also included. We find that while government expenditure, income taxes and foreign capital inflow have the same effects in the two countries, interest rates, money supply, foreign reserves and financial liberalization have different effects, bringing out the differences in the two economies, [E63, 011, 053]
Volume (Year): 14 (2000)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RIEJ20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RIEJ20|
References listed on IDEAS
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.:
- Van Wijnbergen, S., 1983. "Interest rate management in LDC's," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 433-452, September.
- Van Wijnbergen, Sweder, 1986.
"Exchange rate management and stabilization policies in developing countries,"
Journal of Development Economics,
Elsevier, vol. 23(2), pages 227-247, October.
- Sweder van Wijnbergen, 1986. "Exchange Rate Management and Stabilization Policies in Developing Countries," NBER Chapters,in: Economic Adjustment and Exchange Rates in Developing Countries, pages 17-42 National Bureau of Economic Research, Inc.
- Krugman, Paul & Taylor, Lance, 1978. "Contractionary effects of devaluation," Journal of International Economics, Elsevier, vol. 8(3), pages 445-456, August.
- P. Krugman & L. Taylor, 1976. "Contractionary Effects of Devaluations," Working papers 191, Massachusetts Institute of Technology (MIT), Department of Economics.
- Green, Christopher J & Murinde, Victor, 1998. "Modelling the Macroeconomic Policy Framework for an Emerging Market Economy," The Manchester School of Economic & Social Studies, University of Manchester, vol. 66(3), pages 302-330, June.
- Godfrey, Leslie G, 1978. "Testing against General Autoregressive and Moving Average Error Models When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1293-1301, November.
- Green, Christopher & Murinde, Victor, 1993. "The potency of stabilization policy in developing economies: Kenya, Tanzania, and Uganda," Journal of Policy Modeling, Elsevier, vol. 15(4), pages 427-462, August.
- Mosley, Paul, 1980. "Aid, Savings and Growth Revisited," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(2), pages 79-95, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:taf:intecj:v:14:y:2000:i:2:p:133-150. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.