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

24 Pages Posted: 3 Feb 2015

See all articles by Almas Heshmati

Almas Heshmati

Sogang University; Jönköping International Business School

Jungsuk Kim

Sogang University

Donghyun Park

Asian Development Bank - Economic Research

Date Written: December 2014

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.

Keywords: fiscal policy, inequality, inclusive growth, advanced countries, developing Asia

JEL Classification: D31, H20, H50

Suggested Citation

Heshmati, Almas and Kim, Jungsuk and Park, Donghyun, Fiscal Policy and Inclusive Growth in Advanced Countries: Their Experience and Implications for Asia (December 2014). Asian Development Bank Economics Working Paper Series No. 422, Available at SSRN: https://ssrn.com/abstract=2558908 or http://dx.doi.org/10.2139/ssrn.2558908

Almas Heshmati (Contact Author)

Sogang University ( email )

Seoul 121-742
Korea, Republic of (South Korea)
0082-2-705-8771 (Phone)

HOME PAGE: http://www.sogang.ac.kr/english/academic/03_under_0123.html

Jönköping International Business School ( email )

Jönköping, 551 11
Sweden

Jungsuk Kim

Sogang University

Seoul 121-742
Korea, Republic of (South Korea)

Donghyun Park

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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