Theoretical and Applied Economics
No. 1 / 2017 (610), Spring
An empirical assessment of fiscal sustainability for selected South Asian economies
Banasthali University, India
A.K. GIRI
Birla Institute of Technology and Science (BITS), Pilani, India
Geetilaxmi MOHAPATRA
Birla Institute of Technology and Science (BITS), Pilani, India
Abstract. The paper examines sustainability of public finances for five major South Asian economies namely, India, Pakistan, Bangladesh, Sri Lanka and Nepal for period 1985-2014. The results of Gregory–Hansen (1996) and Carrion-i-Silvestre and Sanso (2006) tests confirm presence of long-run relationship between government revenue and expenditure for all the countries. The ARDL estimates of fiscal reaction function indicate positive long-run response of primary balance to rising public debt ratio in case of India, Bangladesh, Pakistan and Sri Lanka. The empirical results thus demonstrate coherence with intertemporal budget constraint for the countries. However, except for Bangladesh, sustainability exists only in weak form underscoring the need to reinforce commitments to long-term fiscal discipline.
Keywords: Fiscal Sustainability, Cointegration, Structural Break, Fiscal Reaction Function, ARDL model.
Contents
- Bankruptcy prediction logit model developed
on Romanian paired sample
Daniel BRÎNDESCU-OLARIU
- The impact of financial risks on economic growth in EU-15
Ionuţ JIANU
Laura-Mădălina PÎRȘCOVEANU
Maria-Daniela TUDORACHE
- Unemployment convergence analysis for Nordic countries: Evidence from linear and nonlinear unit root tests
Burak GÜRIŞ
İpek M. YURTTAGÜLER
Muhammed TIRAŞOĞLU
- Inflation targeting and volatility: Panel evidence
Zied SAYARI
Rima LAJNAF
- Economic structure of educational process
and its implications for the higher education reform
Serguei MIKHAILITCHENKO
- Sustainability of social security systems in EU countries: Panel cointegration analysis with multiple structural breaks
under cross-sectional dependence
Ismet GOCER
Halim TATLI
- The evolution of corruption and its current state – A case study on Romania
Ciprian ROTARU
Raluca GEORGESCU
Dumitru-Alexandru BODISLAV
- Exports in the European Union sub-models.
Determinants and performances
Alina ARSĂNI
George ȘTEFAN
Anca PARASCHIV-GHERMAN
- Growth and distribution of microfinance in India: A panel data analysis
S. SARAVANAN
Devi Prasad DASH
- Human capital and collegiality in academic beehives: Theory and analysis of European Economics faculties
João R. FARIA
Franklin G. MIXON, Jr.
Kamal P. UPADHYAYA
- An empirical assessment of fiscal sustainability for selected South Asian economies
Shruti SHASTRI
A.K. GIRI
Geetilaxmi MOHAPATRA
- The determinants of stock prices: Evidence from the Turkish banking sector
Arif SALDANLI
Mücahit AYDIN
Hakan BEKTAŞ
- Job complexity and wage bargaining
Samir AMINE
- Macroeconomic models
used in structural analysis of GDP
Constantin ANGHELACHE
Alexandru MANOLE
Mădălina-Gabriela ANGHEL
- On the life and death of distance
Orestis VRAVOSINOS
- Vectors of economic growth in the eastern area of the EU
Cătălina MOTOFEI
- Performance management in the context of globalization
Roxana-Lucia MIHAI
Irina Florentina BĂJAN
Alina CREŢU
- Financial development, trade openness and economic growth in MENA countries: TYDL panel causality approach
Hicham AYAD
Mostéfa BELMOKADDEM
- The vulnerabilities of the gas supply system of the Republic of Moldova in the context of its energetic security
Iulian VIȚĂ
Cristina Elena NICOLESCU
- A formal look at the negative interbank rate
Gerasimos T. SOLDATOS
- Informatic system for identifying and evaluation of the environmental aspects
and waste products management
Rodica BUCUROIU
Marius Gabriel PETRESCU
- Banking Union framework and the stability
of the European Banking sector
Andrei HREBENCIUC