Search Results

You are looking at 1 - 10 of 124 items for :

  • "MENAP country" x
Clear All
Mr. Martin D. Cerisola, Mr. Chadi Abdallah, Mr. Victor A Davies, and Mr. Mark Fischer

Introduction The relationship between fiscal policy and the real economy has generated renewed interest among policymakers since the onset of the Great Recession of 2008–09. This owes much to the critical role of fiscal policy in stimulating growth during that episode, as well as to the emerging challenges associated with fiscal adjustment for macroeconomic stability and growth in advanced economies. For many MENAP countries, the impact of the Great Recession has been compounded, in some cases, by the aftermath of the Arab Spring, which has resulted in

Mr. Martin D. Cerisola, Mr. Chadi Abdallah, Mr. Victor A Davies, and Mr. Mark Fischer
This note is a reference guide to the econometric work on fiscal multipliers for MENAP countries. Spending and tax multipliers are estimated from conventional VAR models and identified using a sign-restrictions approach. Estimates show that fiscal multipliers tend to be small, except for those associated with government investment spending, which generally exceed unity. For the average MENAP country, fiscal multipliers for current spending, government consumption and government investment spending are 0.5, 0.8, and 1.1,respectively, while the tax revenues multiplier is estimated at around –0.4. There is also significant variation in the size of these multipliers across countries, consistent with differences in economic fundamentals, such as openness to trade and the flexibility of the exchange rate. The estimated multipliers are generally consistent with theoretical priors, and are in line with the evidence from the literature for other economies and categories of spending and taxes.
Mr. Francesco Grigoli and Ms. Dalia S Hakura

I. I ntroduction The 2008-09 global economic and financial crisis also affected countries in the Middle East, North Africa, and Pakistan (MENAP). The growth slowdown in MENAP countries has been somewhat less severe than in many other regions, as a result of limited integration with global capital markets and positive spillovers from the region’s oil exporters. While growth in the MENAP countries is expected to improve as the world economy begins to recover, it is an open question what role countries’ policies can play to strengthen the extent to which they