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


  • International Monetary Fund


This paper assesses changes in the size and scope of government in 24 transition economies. Whereas these governments have retrenched in terms of public expenditures in relation to GDP, as well as public employment as a share of population, some indicators suggest that size remains high (e.g., rising indebtedness, a heavy regulatory burden, and 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.

Suggested Citation

  • International Monetary Fund, 2001. "Transition Economies; How Appropriate is the Size and Scope of Government?," IMF Working Papers 01/55, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:01/55

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    References listed on IDEAS

    1. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics,in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659 Elsevier.
    2. Persson, Torsten & Tabellini, Guido, 1999. "The size and scope of government:: Comparative politics with rational politicians," European Economic Review, Elsevier, vol. 43(4-6), pages 699-735, April.
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    Cited by:

    1. Alex Segura-Ubiergo & Alejandro Simone & Sanjeev Gupta & Qiang Cui, 2010. "New Evidence on Fiscal Adjustment and Growth in Transition Economies," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 52(1), pages 18-37, March.
    2. 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.
    3. Kristof Witte & Wim Moesen, 2010. "Sizing the government," Public Choice, Springer, vol. 145(1), pages 39-55, October.
    4. Evelin, Ahermaa & Luigi, Bernardi, 2004. "Tax polici in new EU members: Estonia and othr Baltic states," MPRA Paper 18158, University Library of Munich, Germany.
    5. repec:exl:25engi:v:28:y:2017:i:2:p:155-161 is not listed on IDEAS
    6. 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.
    7. Luigi, Bernardi & Mar, Chandler, 2004. "Main tax policy issues in the new members of Eu," MPRA Paper 18195, University Library of Munich, Germany.
    8. World Bank, 2003. "Serbia and Montenegro : Public Expenditure and Institutional Review, Volume 2. Serbia," World Bank Other Operational Studies 14823, The World Bank.
    9. 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.
    10. World Bank, 2004. "Republic of Tunisia - Development Policy Review : Making Deeper Trade Integration Work for Growth and Jobs," World Bank Other Operational Studies 15693, The World Bank.
    11. Catriona Purfield, 2003. "Fiscal Adjustment in Transition : Evidence from the 1990s," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 39(1), pages 43-62, January.
    12. Henri Lorie, 2003. "Priorities for Further Fiscal Reforms in the Commonwealth of Independent States," IMF Working Papers 03/209, International Monetary Fund.
    13. Nikopour, Hesam & Shah Habibullah, Muzafar, 2010. "Shadow Economy and Poverty," MPRA Paper 23599, University Library of Munich, Germany.
    14. Catriona Purfield, 2003. "Fiscal Adjustment in Transition Countries; Evidence From the 1990's," IMF Working Papers 03/36, International Monetary Fund.
    15. Catriona Purfield, 2003. "Fiscal Adjustment in Transition : Evidence from the 1990s," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 39(1), pages 43-62, January.
    16. Alam, Asad & Sundberg, Mark, 2002. "A decade of fiscal transition," Policy Research Working Paper Series 2835, The World Bank.


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