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Impact of Government Expenditure on Growth; The Case of Azerbaijan

International Monetary Fund

No 2008/115, IMF Working Papers from International Monetary Fund

Abstract: This paper evaluates a fiscal scenario based on the assumption of a rapid scaling-up of expenditure to be followed by a rapid scaling-down in the context of Azerbaijan's current temporary oil production boom. To this end, it relies on a review of historical precedents and a neoclassical growth model. Based on both strands of analysis, the paper suggests that the evaluated fiscal scenario poses significant risks to growth sustainability.

Keywords: Expenditure; Capital spending; Public investment spending; Oil, gas and mining taxes; Oil production; WP,Azerbaijan,GDP,growth spurt,reduction strategy (search for similar items in EconPapers)
Pages: 18
Date: 2008-05-01
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