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Fiscal Policy and Inclusive Growth in Advanced Countries: Their Experience and Implications for Asia

Author

Listed:
  • Heshmati, Almas

    (Sogang University)

  • Kim, Jungsuk

    (Sogang University)

  • Park, Donghyun

    (Asian Development Bank)

Abstract

Advanced economies have a significantly longer history of using fiscal policy to tackle inequality and promote inclusive growth than those in developing Asia. Therefore, as developing Asia explores the more active use of fiscal policy for inclusive purposes, it can learn from the experiences of advanced countries. Those experiences clearly suggest that fiscal policy can have a significant effect on inequality which provides some cause for optimism about its equity-promoting potential. Nevertheless, that optimism should be tempered by the different circumstances of advanced versus developing economies along with the need for developing Asia to maintain fiscal sustainability and economic growth.

Suggested Citation

  • Heshmati, Almas & Kim, Jungsuk & Park, Donghyun, 2014. "Fiscal Policy and Inclusive Growth in Advanced Countries: Their Experience and Implications for Asia," ADB Economics Working Paper Series 422, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0422
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    References listed on IDEAS

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    Cited by:

    1. Joshua Aizenman & Yothin Jinjarak & Jungsuk Kim & Donghyun Park, 2015. "Tax Revenue Trends in Asia and Latin America: A Comparative Analysis," NBER Working Papers 21755, National Bureau of Economic Research, Inc.
    2. Bağdat Sıla Avcı & Özgür Tonus, 2022. "The Impact of Fiscal Policies on Inclusive Growth in Turkiye," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 66(66), pages 293-306, December.
    3. Ekaterina Arapova, 2018. "Determinants Of Household Final Consumption Expenditures In Asian Countries: A Panel Model, 1991-2015," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 18(1), pages 121-140.
    4. P. K. Viswanathan & Chandra Sekhar Bahinipati, 2021. "Growth and human development in the regional economy of Gujarat, India: an analysis of missed linkages," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(1), pages 25-47, June.

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    More about this item

    Keywords

    fiscal policy; inequality; inclusive growth; advanced countries; developing Asia;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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