Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries

21 Pages Posted: 6 Feb 2006

See all articles by Ugo Fasano

Ugo Fasano

International Monetary Fund (IMF)

Qing Wang

International Monetary Fund (IMF)

Date Written: December 2001

Abstract

Through the use of a multivariate cointegration and error-correction model, this study investigates the short- and long-run relationship over the past two decades between fiscal expenditure policy and non-oil real GDP growth in member countries of the Gulf Cooperation Council (GCC). Despite the important role of the government, the empirical results do not strongly support that increases in fiscal expenditures tend to slow or accelerate non-oil real growth in these countries. However, the breakdown into current and capital expenditures is useful for assessing the effects of each spending category on short- and long-run non-oil real GDP growth.

Keywords: fiscal policy, non-oil real growth, GCC countries

JEL Classification: E62, H50, H54, N15

Suggested Citation

Fasano, Ugo and Wang, Qing, Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries (December 2001). IMF Working Paper, Vol. , pp. 1-21, 2001. Available at SSRN: https://ssrn.com/abstract=880314

Ugo Fasano (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Qing Wang

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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