Impact of Government Expenditure on Growth: The Case of Azerbaijan
20 Pages Posted: 1 Jul 2008
Date Written: May 2008
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: Suggested Citation
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