Spatial impacts of fiscal stimulus policies during the 2009 global financial crisis in Indonesia
Arief Yusuf and
Asia-Pacific Journal of Regional Science, 2021, vol. 5, issue 1, No 15, 305-326
Abstract In response to the 2008/2009 global financial crisis (GFC), many developing countries, including Indonesia, launched fiscal stimulus packages (FSP). These FSPs typically consist of several sophisticated fiscal policies that may not necessarily complement each other. While the impact of these policies at the aggregate country level in developed countries has been widely discussed, the spatial impact of these policies within developing countries is less understood. Utilizing an inter-regional computable general equilibrium (CGE) model, this paper aims to assess and understand the short- and long-term economic impacts of these stimulus policies using Indonesia as a case study. This paper, hence, provides a quantitative ex-post assessment of FSPs typically implemented during the 2009 GFC by developing economies. Overall, results, indicate that fiscal stimulus had a positive impact on aggregate demand and on poverty prevention, principally via stimulating private consumption. Corporate income tax cuts have the largest economic impact in the long-run, and cash transfers are the most useful policy tool for alleviating poverty. An FSP, however, could have an uneven spatial distributional effect on output across regions, particularly in the short-term.
Keywords: Economic crisis; Fiscal stimulus; Spatial general equilibrium model; Macro–micro-economic model (search for similar items in EconPapers)
JEL-codes: C68 D58 E62 H12 O23 R13 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s41685-020-00176-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:apjors:v:5:y:2021:i:1:d:10.1007_s41685-020-00176-2
Ordering information: This journal article can be ordered from
https://www.springer ... cience/journal/41685
Access Statistics for this article
Asia-Pacific Journal of Regional Science is currently edited by Yoshiro Higano
More articles in Asia-Pacific Journal of Regional Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().