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Fiscal Policy and Economic Growth : Lessons for Eastern Europe and Central Asia

Author

Listed:
  • Cheryl Gray
  • Tracey Lane
  • Aristomene Varoudakis

Abstract

This study explores public finance policies in the transition countries of Europe and Central Asia (ECA) and their likely effects on economic growth. The analysis is organized in three parts. Part one reviews public finance systems across the ECA region with regard to overall size, structure of expenditures and revenues, and patterns of fiscal adjustment over time. It compares these patterns and trends in ECA countries against those in fast-growing economies in other regions, and it explores possible relationships between these public finance variables and rates of economic growth. Part two undertakes detailed analysis of public expenditures policies in four major areas: infrastructure, education, health, and pensions. Part three turns to the revenue side of the budget and looks in detail at two issues of particular importance in current policy debates: the impact of flat income tax reforms and the level and structure of taxes on labor.

Suggested Citation

  • Cheryl Gray & Tracey Lane & Aristomene Varoudakis, 2007. "Fiscal Policy and Economic Growth : Lessons for Eastern Europe and Central Asia," World Bank Publications, The World Bank, number 6883, June.
  • Handle: RePEc:wbk:wbpubs:6883
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Iwasaki, Ichiro & Kumo, Kazuhiro, 2016. "Decline and Growth in Transition Economies: A Meta-Analysis," CEI Working Paper Series 2016-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Karsten Staehr, 2008. "Estimates of employment and welfare effects of personal labour income taxation in a flat-tax country : The case of Estonia," Bank of Estonia Working Papers 2008-03, Bank of Estonia, revised 30 Oct 2008.
    3. Richard M Bird & Eric M Zolt, 2008. "Tax Policy in Emerging Countries," Environment and Planning C, , vol. 26(1), pages 73-86, February.
    4. Debasis Bandyopadhyay & Xueli Tang, 2011. "Parental nurturing and adverse effects of redistribution," Journal of Economic Growth, Springer, vol. 16(1), pages 71-98, March.
    5. Lect.. Eugenia Ramona Mara Ph. D & Lect. Monica Achim Ph. D & Lect.. Angela Filip Ph. D, 2010. "Analysis Of The Taxation System In Romania In The Economic Crisis Context," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(38), pages 1-8, May.
    6. Halkos, George & Paizanos, Epameinondas, 2015. "Fiscal policy and economic performance: A review of the theoretical and empirical literature," MPRA Paper 67737, University Library of Munich, Germany.
    7. Karsten STAEHR, "undated". "Estimates of Employment and Welfare Effects of Labour Income Taxation in a Country with a Flat: the Case of Estonia," EcoMod2008 23800135, EcoMod.
    8. Nursini Nursini, 2017. "Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia: 1990-2015," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 358-364.
    9. World Bank, 2009. "Pensions in Crisis : Europe and Central Asia Regional Policy Note," World Bank Other Operational Studies 18728, The World Bank.
    10. Patonov Nikolay, 2016. "Fiscal Impacts on Output in a Small Open Economy: The Case of Albania," Scientific Annals of Economics and Business, De Gruyter Open, vol. 63(2), pages 161-169, June.
    11. World Bank, 2014. "Restructuring Corporate Income Tax and Value Added Tax in Vietnam : An Analysis of Current Changes and Agenda for the Future," World Bank Other Operational Studies 17832, The World Bank.

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