2017, Volume 70 - Issue 1
RSS feed citation: At RePEc
Publication date: 01 February 2017
THE RELATIONSHIP BETWEEN SAVINGS AND ECONOMIC GROWTH AT THE DISAGGREGATED LEVELRead the article
MONETARY POLICY TRANSMISSION OVER THE REAL SECTOR OF BANGLADESH ECONOMY: AN SVAR APPROACHRead the article
REMITTANCES AND FOREIGN AID AS SOURCES OF EXTERNAL DEVELOPMENT FINANCE: IMPACTS ON SAVINGS AND INVESTMENT IN POST-WAR LEBANONRead the article
THE DYNAMIC CAUSAL LINKAGE BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM ETHIOPIARead the article
Marco TRONZANO, Università degli Studi di Genova, Dipartimento di Economia e Metodi Quantitativi, Genova, Italia
This paper reassesses the sustainability of public finances in Poland during the last two decades, characterized by the end of the macroeconomic stabilization phase and the implementation of several structural reforms. Cointegration tests allowing for regime-shifts reveal that fiscal policy is “weakly” sustainable, due to a significant divergence between revenues and expenditures in more recent years. Moreover, different from earlier research, I find strong support for bi-directional causality between revenues and expenditures. The main policy implication is that, in order to qualify for EMU membership, Poland should pursue further fiscal consolidation in the years ahead, implementing a more balanced fiscal-mix between revenue enhancement and expenditure reduction measures.
C22, E62, H62
Fiscal Sustainability, Transition Economies, Poland, Cointegration, Regime Shifts
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