New Evidence on Fiscal Adjustment and Growth in Transition Economies

35 Pages Posted: 13 Nov 2006

See all articles by Alejandro S. Simone

Alejandro S. Simone

International Monetary Fund (IMF)

Alex Segura-Ubiergo

International Monetary Fund

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: October 2006

Abstract

This paper analyzes the relationship between fiscal adjustment and real GDP growth in a panel of 26 transition economies during 1992-2001. Unlike most previous studies using cross-country regressions, the paper finds a positive and statistically significant relationship between fiscal adjustment and growth that is robust to different model specifications and estimation methods. The paper also presents country experiences to delve deeper into the mechanisms that may underlie this statistical relationship.

JEL Classification: C33, E62, H11, H60

Suggested Citation

Simone, Alejandro S. and Segura-Ubiergo, Alex and Gupta, Sanjeev, New Evidence on Fiscal Adjustment and Growth in Transition Economies (October 2006). IMF Working Paper No. 06/244, Available at SSRN: https://ssrn.com/abstract=944082

Alejandro S. Simone (Contact Author)

International Monetary Fund (IMF) ( email )

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

Alex Segura-Ubiergo

International Monetary Fund ( email )

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

HOME PAGE: http://www.imf.org

Sanjeev Gupta

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

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

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