Munich Personal RePEc Archive

Assessing Fiscal Sustainability for SAARC and IMT-GT Countries

Syed, Munawar-Shah and Mariani, Abdul-Majid and Syed, Hussain-Shah (2014): Assessing Fiscal Sustainability for SAARC and IMT-GT Countries. Published in: Romanian Journal of Fiscal Policy , Vol. 5, No. 2 (2014): pp. 26-40.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_62783.pdf

Download (792kB) | Preview

Abstract

This study examines the fiscal sustainability of SAARC and Asian Growth-Triangle countries using Fisher and IPS tests of panel unit root and Pedroni test of panel cointegration. The tests are applied to the relationships, in terms of GDP ratios, between, i) the debt and primary surplus, and ii) government expenditure and revenues. Both models show consistent results suggesting that fiscal policy for the low-income countries is sustainable whereas it may not be sustainable for the high-income countries. This also indicates that the fiscal policy can be sustainable (non-sustainable) even for the debt above (below) 60 percent of the GDP.

Available Versions of this Item

  • Assessing Fiscal Sustainability for SAARC and IMT-GT Countries. (deposited 13 Mar 2015 15:39) [Currently Displayed]
UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.