Fiscal Policy and Structural Reforms in Transition Economies: An Empirical Analysis

44 Pages Posted: 25 Sep 2007

See all articles by Jukka Pirttila

Jukka Pirttila

United Nations - World Institute for Development Economics Research (UNU/WIDER); Tampere University of Technology

Multiple version iconThere are 2 versions of this paper

Date Written: May 25, 2000

Abstract

This paper makes an empirical examination of the relationship between fiscal balance and structural reforms using panel data from 25 transition economies. The results indicate that price liberalisation has a positive impact on fiscal performance, while privatisation and restructuring, via unemployment, affect the fiscal balance negatively. These findings are somewhat in contrast with earlier empirical work and theoretical transition economics that maintain fiscal pressures are most severe in fast-reforming countries. The analysis further suggests that countries with better fiscal positions may have benefited from favourable initial conditions.

Keywords: fiscal policy, structural reforms, transition economies

Suggested Citation

Pirttila, Jukka, Fiscal Policy and Structural Reforms in Transition Economies: An Empirical Analysis (May 25, 2000). BOFIT Discussion Paper No. 5/2000. Available at SSRN: https://ssrn.com/abstract=1016067 or http://dx.doi.org/10.2139/ssrn.1016067

Jukka Pirttila (Contact Author)

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

Tampere University of Technology ( email )

P.O. 541, Korkeakoulunkatu 8 (Festia building)
Tampere, FI-33101
Finland

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