Impact of Government Expenditure on Growth: The Case of Azerbaijan

20 Pages Posted: 1 Jul 2008

See all articles by Junko Koeda

Junko Koeda

Ministry of Finance, Japan; Waseda University - School of Political Science and Economics

V. Kramarenko

International Monetary Fund (IMF)

Date Written: May 2008

Abstract

This paper evaluates a fiscal scenario based on the assumption of a rapid scaling-up of expenditure to be followed by a rapid scaling-down in the context of Azerbaijan's current temporary oil production boom. To this end, it relies on a review of historical precedents and a neoclassical growth model. Based on both strands of analysis, the paper suggests that the evaluated fiscal scenario poses significant risks to growth sustainability.

Keywords: Working Paper, Azerbaijan, Government expenditures, Economic growth, Public investment, Oil revenues

Suggested Citation

Koeda, Junko and Kramarenko, V., Impact of Government Expenditure on Growth: The Case of Azerbaijan (May 2008). IMF Working Paper No. 08/115, Available at SSRN: https://ssrn.com/abstract=1153736

Junko Koeda (Contact Author)

Ministry of Finance, Japan ( email )

3-1-1 Kasumigaseki
Chiyoda-ku
Tokyo, 100-8940
Japan
1008940 (Fax)

Waseda University - School of Political Science and Economics ( email )

1-6-1 Nishi-Waseda
Shinjuku-ku, Tokyo 169-8050, Tokyo 169-8050
Japan

V. Kramarenko

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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