› › Expenditure Composition Fiscal Adjustment And Growth In Low Income Countries

Fiscal Adjustment for Stability and Growth

Author : Mr.James Daniel

Publisher : International Monetary Fund

Page : 80 pages

File Size : 28,4 MB

Release : 2006-08-17

Category : Business & Economics

ISBN : 9781589065130

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Book Description

The pamphlet (which updates the 1995 Guidelines for Fiscal Adjustment) presents the IMF’s approach to fiscal adjustment, and focuses on the role that sound government finances play in promoting macroeconomic stability and growth. Structured around five practical questions—when to adjust, how to assess the fiscal position, what makes for successful adjustment, how to carry out adjustment, and which institutions can help—it covers topics such as tax policies, debt sustainability, fiscal responsibility laws, and transparency.



Fiscal Policy and Long-Term Growth

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 257 pages

File Size : 25,42 MB

Release : 2015-04-20

Category : Business & Economics

ISBN : 1498344658

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Book Description

This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.



Expenditure Composition, Fiscal Adjustment, and Growth in Low-Income Countries

Author : Carlos Mulas-Granados

Publisher : INTERNATIONAL MONETARY FUND

Page : 40 pages

File Size : 19,51 MB

Release : 2002-04-01

Category :

ISBN : 9781451850000

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Book Description

This paper assesses the effects of expenditure composition as well as fiscal adjustment on economic growth in a sample of 39 low-income countries during the 1990s. The paper finds that strong budgetary positions and fiscal consolidation are generally associated with higher economic growth in both the short and long terms. The composition of public outlays also matters: Countries where spending is concentrated on wages tend to have lower growth, while those that allocate higher shares to capital and nonwage goods and services enjoy faster output expansion. Expenditure composition, along with the size of the fiscal consolidation and initial fiscal conditions, affects the sustainability of adjustment. Initial fiscal conditions also have a bearing on the nexus between fiscal deficits and growth.



Expenditure Composition, Fiscal Adjustment, and Growth in Low-Income Countries

Author : Sanjeev Gupta

Publisher :

Page : 40 pages

File Size : 24,23 MB

Release : 2006

Category :

ISBN :

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Book Description

This paper assesses the effects of expenditure composition as well as fiscal adjustment on economic growth in a sample of 39 low-income countries during the 1990s. The paper finds that strong budgetary positions and fiscal consolidation are generally associated with higher economic growth in both the short and long terms. The composition of public outlays also matters: Countries where spending is concentrated on wages tend to have lower growth, while those that allocate higher shares to capital and nonwage goods and services enjoy faster output expansion. Expenditure composition, along with the size of the fiscal consolidation and initial fiscal conditions, affects the sustainability of adjustment. Initial fiscal conditions also have a bearing on the nexus between fiscal deficits and growth.



Expansionary Austerity New International Evidence

Author : Mr.Daniel Leigh

Publisher : International Monetary Fund

Page : 41 pages

File Size : 11,4 MB

Release : 2011-07-01

Category : Business & Economics

ISBN : 1455294691

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Book Description

This paper investigates the short-term effects of fiscal consolidation on economic activity in OECD economies. We examine the historical record, including Budget Speeches and IMFdocuments, to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Using this new dataset, our estimates suggest fiscal consolidation has contractionary effects on private domestic demand and GDP. By contrast, estimates based on conventional measures of the fiscal policy stance used in the literature support the expansionary fiscal contractions hypothesis but appear to be biased toward overstating expansionary effects.



Government Expenditure and Economic Growth

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 30 pages

File Size : 20,72 MB

Release : 1989-05-15

Category : Business & Economics

ISBN : 1451974159

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Book Description

This paper examines the empirical evidence on the contribution that government and, in particular, capital expenditure make to the growth performance of a sample of developing countries. Using the Denison growth accounting approach, this study finds that social expenditures may have a significant impact on growth in the short run, but infrastructure expenditures may have little influence. While current expenditures for directly productive purposes may exert a positive influence, capital expenditure in these sectors appears to exert a negative influence. Experiments with other explanatory variables confirm the importance of the growth of exports to the overall growth rate.



The Effectiveness of Fiscal Policy in Stimulating Economic Activity

Author : Richard Hemming

Publisher : International Monetary Fund

Page : 62 pages

File Size : 44,40 MB

Release : 2002-12

Category : Business & Economics

ISBN :

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Book Description

This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.



From Stimulus to Consolidation

Author : Juan Toro R.

Publisher : International Monetary Fund

Page : 122 pages

File Size : 21,27 MB

Release : 2010-10-06

Category : Business & Economics

ISBN : 1455217611

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Book Description

This paper identifies policy tools that could be used for fiscal consolidation in advanced and emerging economies in the years ahead. The consolidation strategy, particularly in advanced countries, should aim to stabilize age-related spending in relation to GDP, reduce non-age-related expenditure ratios, and increase revenues. Bold reforms are needed to offset projected increases in age-related spending, particularly health care. On the revenue side, measures could include improving tax compliance, for example through better international cooperation, as well as increasing the yield from VAT by eliminating exemptions and reduced rates, further developing property taxes, and increasing excise rates within the range of rates already applicable in comparable countries.



Unproductive Public Expenditures

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 56 pages

File Size : 14,97 MB

Release : 2005-04-04

Category : Business & Economics

ISBN : 1557755418

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Book Description

Public expenditure policy, together with efforts to raise revenue,is at the core of efficient and equitable adjustment. Public expenditureproductivity has critical implications for fiscal adjustment, particularly as the competition for limited public resources intensifies.By providing a framework for defining and analyzing public expenditureproductivity and unproductive expenditures, this pamphlet discusseshow economic policymakers may approach these issues.



Tax Composition and Growth

Author : Mr.Santiago Acosta Ormaechea

Publisher : International Monetary Fund

Page : 36 pages

File Size : 22,37 MB

Release : 2012-10-26

Category : Business & Economics

ISBN : 161635917X

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Book Description

We investigate the relation between changes in tax composition and long-run economic growth using a new dataset covering a broad cross-section of countries with different income levels. We specifically consider 69 countries with at least 20 years of observations on total tax revenue during the period 1970-2009—21 high-income, 23 middle-income and 25 low-income countries. To our knowledge this is the most comprehensive and up-to-date dataset on tax composition and growth. We find that increasing income taxes while reducing consumption and property taxes is associated with slower growth over the long run. We also find that: (1) among income taxes, social security contributions and personal income taxes have a stronger negative association with growth than corporate income taxes; (2) a shift from income taxes to property taxes has a strong positive association with growth; and (3) a reduction in income taxes while increasing value added and sales taxes is also associated with faster growth.