ARTÍCULO
TITULO

Delayed Fiscal Adjustment and Economic Growth: Empirical Evidence using Autoregressive Distributed Lag Bound Testing Model

Salem Kanoun    

Resumen

This study is an attempt to quantify the delayed fiscal adjustment using an accounting framework and to test its short and long run effects on growth in Tunisia by using Autoregressive Distributed Lag (ARDL) model over the period 1975-2015. We find that delayed fiscal adjustment hurts per capita GDP growth not only in the short run but also in the long run, which raises arguable evidence that the implementation of IMF supported programs is truly necessary in Tunisia in time of crisis particularly when public finance regulatory forces and the ability to adjust fail and become non-functional. This implies that any delay in bringing forward fiscal reforms is counterproductive in the short run and will result in net losses in per capita GDP growth in the long run.Keywords: Fiscal Sustainability, Delayed fiscal Adjustment, Economic Growth, ARDLJEL Classifications: E61 E62DOI: https://doi.org/10.32479/ijefi.8026

 Artículos similares

       
 
Daniela Tavasci,Luigi Ventimiglia     Pág. 355 - 384
Partendo da un?analisi del debito di Sylos Labini (2003) e Pasinetti (1998), il presente articolo re-esamina criticamente le raccomandazioni di politica economica suggerite dalle teorie che scoraggiano l?intervento dello stato e sostengono l?austerità, i... ver más
Revista: Moneta e Credito

 
Nicolas Dorn     Pág. Finance an - 60
This article provides a new perspective on sovereign finance and money in England from pre- modern to early modern times. Re-reading the literature on sovereign fiscality through the lens of sovereign jurisdictions and religious authority, it describes t... ver más

 
José Mauricio Gil León,John William Rosso Murillo,Edgar Alonso Ramirez Hernández     Pág. 137 - 147
We study the effect of public indebtedness on economic growth in Latin American economies. Our main findings indicate that a Public Debt-GDP ratio of 75% leads to a deceleration in growth. On the other hand, a ratio of 35% increases the growth volatility... ver más

 
Begüm ERDIL SAHIN     Pág. 297 - 306
Inflation is considered as a monetary phenomenon and its increase is linked with money supply according to the Monetarist view. In other words, the increase in budget deficits leads to an increase in money supply and as a result, inflation rates rise. In... ver más

 
Abdulkadir Abdulrashid Rafindadi,Abdulazeez Musa     Pág. 125 - 137
This study examined the impact of debt management strategies on the Nigeria?s public debt profile. Specifically, the study evaluates the impact of debt refinancing, and measure the impacts of debt forgiveness and debt conversion scheme on the public debt... ver más