Estimating Fiscal Multipliers in Selected Asian Economies

Publication | August 2021

This paper estimates the effects of fiscal measures on output using 2000–2019 data from nine developing Asian economies.

The surge of the coronavirus disease (COVID-19) pandemic has driven countries worldwide to launch substantial stimulus packages to support economic recovery. The results of this study show that (i) the 4-quarter and 8-quarter cumulative fiscal multipliers for general government spending range between 0.73 and 0.88 in baselines, in line with recent estimates for developed countries but larger than those for developing countries; (ii) government spending is more effective than tax cuts in boosting the economy; and (iii) an accommodative monetary policy regime can make fiscal measures more effective.

Contents 

  • Introduction
  • Literature Review
  • Methodology
  • Data and Estimation
  • Discussion of Results
  • Summary and Conclusions
  • Appendixes

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • Governance and public sector management
  • Public financial management
  • Public administration, economic affairs, and policy
Pages
  • 30
Dimensions
  • 8.5 x 11
SKU
  • WPS210309-2
ISSN
  • 2313-6537 (print)
  • 2313-6545 (electronic)

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