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

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  • International Monetary Fund

Abstract

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.

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  • International Monetary Fund, 2001. "Transition Economies: How Appropriate is the Size and Scope of Government?," IMF Working Papers 2001/055, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2001/055
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    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. 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. Evelin, Ahermaa & Luigi, Bernardi, 2004. "Tax polici in new EU members: Estonia and othr Baltic states," MPRA Paper 18158, University Library of Munich, Germany.
    3. Miss Catriona Purfield, 2003. "Fiscal Adjustment in Transition Countries: Evidence From the 1990's," IMF Working Papers 2003/036, International Monetary Fund.
    4. Mr. Henri Lorie, 2003. "Priorities for Further Fiscal Reforms in the Commonwealth of Independent States," IMF Working Papers 2003/209, International Monetary Fund.
    5. Luigi, Bernardi & Mar, Chandler, 2004. "Main tax policy issues in the new members of Eu," MPRA Paper 18195, University Library of Munich, Germany.
    6. Milan Žák & Petr Vymětal, 2006. "Institucionální aspekty nové komparativní ekonomie: ČR a EU [Institutional aspects of new comparative economy: Czech republic and European union]," Politická ekonomie, Prague University of Economics and Business, vol. 2006(5), pages 583-609.
    7. Nikopour, Hesam & Shah Habibullah, Muzafar, 2010. "Shadow Economy and Poverty," MPRA Paper 23599, University Library of Munich, Germany.
    8. Alam, Asad & Sundberg, Mark, 2002. "A decade of fiscal transition," Policy Research Working Paper Series 2835, The World Bank.
    9. Kristof Witte & Wim Moesen, 2010. "Sizing the government," Public Choice, Springer, vol. 145(1), pages 39-55, October.
    10. World Bank, 2003. "Serbia and Montenegro : Public Expenditure and Institutional Review, Volume 2. Serbia," World Bank Publications - Reports 14823, The World Bank Group.
    11. World Bank, 2004. "Republic of Tunisia - Development Policy Review : Making Deeper Trade Integration Work for Growth and Jobs," World Bank Publications - Reports 15693, The World Bank Group.
    12. Margaret Grosh & Carlo del Ninno & Emil Tesliuc & Azedine Ouerghi, 2008. "For Protection and Promotion : The Design and Implementation of Effective Safety Nets," World Bank Publications - Books, The World Bank Group, number 6582, December.
    13. Alimi, R. Santos, 2014. "Does Optimal Government Size Exist for Developing Economies? The Case of Nigeria," MPRA Paper 56073, University Library of Munich, Germany.

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