Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries

December 1, 2001

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Format: Chicago

Qing Wang, and Ugo Fasano-Filho. Fiscal Expenditure Policy and Non-Oil Economic Growth: Evidence from GCC Countries, (USA: International Monetary Fund, 2001) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Through the use of a multivariate cointegration and error-correction model, this study investigates the short- and long-run relationship over the past two decades between fiscal expenditure policy and non?oil real GDP growth in member countries of the Gulf Cooperation Council (GCC). Despite the important role of the government, the empirical results do not strongly support that increases in fiscal expenditures tend to slow or accelerate non?oil real growth in these countries. However, the breakdown into current and capital expenditures is useful for assessing the effects of each spending category on short- and long-run non?oil real GDP growth.

Subject: Capital spending, Current spending, Expenditure, Oil prices, Prices, Total expenditures

Keywords: Capital spending, Current spending, Fiscal policy, GCC countries, GCC countries in the sample, GCC country, GCC government, Global, Government capital, Government expenditure, Government policy, Government saving, Government size, Non-oil real growth, Oil prices, Total expenditures, WP

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/195
Stock No:

WPIEA1952001
ISBN:

9781451859911
ISSN:

1018-5941

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