Is Taiwan’s Declining Public Investment a Crisis in the Making?

Chen, Chien-Hsun (2023): Is Taiwan’s Declining Public Investment a Crisis in the Making?

Abstract

Taiwan’s economic transformation has been a cause for concern in recent years with the latest data indicating a slower expansion of fixed capital formation, a crucial factor for both domestic demand and economic growth. A crucial contributor is the shift in government spending in favor of welfare spending and away from public investment to comply with voters’ preference for low taxes and high government spending during elections. Since public investments in infrastructure are debt-financed, the accumulation of government debt could lead to slower economic growth and an increasingly heavy tax burden for future generations.

• Item Type: MPRA Paper
• Language: English
• Keywords: Taiwan; economic growth, government spending, public investment.
• Subjects: H - Public Economics > H0 - General; H - Public Economics > H0 - General > H00 - General; H - Public Economics > H1 - Structure and Scope of Government

References

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