Fiscal Policy and Growth in Developing Asia
In developing Asia, fiscal policy can influence both short- and long-term growth. Governments must pay attention to the mix of both their revenues and expenditures in order to maximize the contribution of fiscal policy to growth.
The study shows that there are conceptual grounds why fiscal policy, including the composition of taxes and government spending, can have a significant effect on growth. Property taxes can have a more benign impact on growth than direct taxes, and shifting government spending to education can have a sizable impact.
- Review of Literature
- Overall Trends
- Quantifying the Impact on Growth of Fiscal Policy Changes
- Concluding Observations