Fiscal Indicators for Economic Growth: An Illusory Search?

30 Pages Posted: 15 Feb 2006

See all articles by Jack Diamond

Jack Diamond

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: August 1990

Abstract

The search for ways to ensure growth while accommodating necessary expenditure cuts to correct fiscal imbalances, has often led to the advocacy of the government own savings (GOS) measure as an indicator of growth potential in fiscal adjustment. This paper critically examines the rationale of this approach and its implicit assumption of the primacy of capital expenditure for the growth process. In light of the problems revealed in the GOS approach, the paper explores the possibility of alternative weighted expenditure indicators and illustrates the proposed technique, employing data from Thailand.

JEL Classification: 110, 121, 320

Suggested Citation

Diamond, Jack, Fiscal Indicators for Economic Growth: An Illusory Search? (August 1990). IMF Working Paper, Vol. , pp. 1-28, 1990. Available at SSRN: https://ssrn.com/abstract=884981

Jack Diamond (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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