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

Qing Wang and Ugo Fasano-Filho

No 2001/195, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; GCC country; government expenditure; fiscal policy; non-oil real growth; GCC countries; GCC government; government policy; government saving; government capital; government size; GCC countries in the sample; Current spending; Capital spending; Total expenditures; Oil prices; Global (search for similar items in EconPapers)
Pages: 21
Date: 2001-12-01
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2001/195

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