Fiscal sustainability in a panel of Asian countries

Olumuyiwa Adedeji and John Thornton

Applied Economics Letters, 2010, vol. 17, issue 7, 711-715

Abstract: Panel cointegration techniques indicate that government revenue (REV) and expenditure (EXP) in a panel of five Asian economies for the period 1974 to 2001 were nonstationary and cointegrated series. However, the cointegration coefficient was significantly less than unity, indicating 'weak' fiscal sustainability and the likelihood that policy measures would be needed to put the public finances on a more sustainable basis.

Date: 2010
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DOI: 10.1080/13504850802297871

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