Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorBùi Duy Tùngvi
dc.description.abstractPurpose The purpose of this paper is to investigate the problem of fiscal sustainability for a panel of developing Asian economies. Design/methodology/approach In this study, cross-section dependence and heterogeneity are controlled while estimating the fiscal reaction function, which shows how governments react to the accumulation of public debt. The study employs the common correlated effects mean group estimator in Pesaran (2006) for a panel of 22 developing Asian economies for the period 1999‒2017. Findings It is found that the fiscal sustainability issue in the region is not so benign as in previous studies. Overall, fiscal policy is unsustainable, even for the nonlinear fiscal rule. Country-specific long-run coefficients are also examined in the study. Research limitations/implications The findings show that many developing economies in the region could not satisfy the intertemporal budget constraint, which raises concerns about debt sustainability in the area, especially for the post-crisis period. Originality/value This study investigates whether governments can maintain the sustainability of public finances in the long-run, if the ratios of public debt over GDP and primary deficit over GDP continue their recent problematic trends. Another novelty is controlling for heterogeneous effects among the countries in the region to give a more precise picture of debt sustainability. The empirical evidence also supports that insolvency risk can occur at low levels of public
dc.formatPortable Document Format (PDF)-
dc.publisherUniversity of Economics Ho Chi Minh Cityvi
dc.relation.ispartofJournal of Asian Business and Economic Studiesvi
dc.relation.ispartofseriesJED, Vol.27(1)-
dc.subjectFiscal sustainabilityvi
dc.subjectDeveloping Asiavi
dc.titleFiscal sustainability in developing Asia – new evidence from panel correlated common effect modelvi
dc.typeJournal Article-
item.openairetypeJournal Article-
item.fulltextOnly abstracts-
Appears in Collections:JABES in English
Show simple item record

Google ScholarTM



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.