Fiscal policy and economic activity in South Asia

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Global 7-day rolling average of students out of school due to COVID-19 closures

“…In the case of tax measures, output is shown to expand in line with fiscal contraction, but the results are only statistically significant in Indonesia and thailand. relatedly, Beyer and Milivojevic (2019) show that changes in tax revenue have no significant impact on economic activity in South asia, in line with tang et al (2010). a large number of studies have sought to explain the lower fiscal multipliers in eMes in various ways (tanaka, 2021, for more details).…”

Does Tax Effort Moderate the Effect of Government Expenditure on Regional Economic Growth? A Dynamic Panel Data Evidence from Indonesia

“…On the other hand, the smaller capital expenditure allocating province experienced lower economic growth than the larger capital expenditure province. Capital expenditure allocation usually aims to increase the availability of capital goods through public infrastructure development to meet the needs and increase economic activity (Beyer & Milivojevic, 2020). In contrast to the effect of goods and services and capital expenditure on economic growth, the local tax effort negatively and significantly affects economic growth, with estimated coefficient β 3 = -4.617 (p-value < 0.05).…”

Globalisation Paradox and Economic Competitiveness of Emerging Economies

“…Prudent fiscal policy ensuring macroeconomic stability is a key prerequisite for sustainable growth and determines the distributional effect of growth (Beyer, Milivojevic 2020). Fiscal policy should strive to smooth out business cycle fluctuations by strengthening the automatic adjustment of taxes and by adjusting government expenditures (Beyer, Milivojevic 2020).…”

“…Prudent fiscal policy ensuring macroeconomic stability is a key prerequisite for sustainable growth and determines the distributional effect of growth (Beyer, Milivojevic 2020). Fiscal policy should strive to smooth out business cycle fluctuations by strengthening the automatic adjustment of taxes and by adjusting government expenditures (Beyer, Milivojevic 2020). Beyond the headlines of GDP growth, international trade must be accompanied by the quality of economic growth, natural resources and the environment protection, the quality of life and a reduction in inequality.…”