Innovative Fiscal Policy and Economic Development in Transition Economies

by Gevorkyan; Aleksandr V.

• ISBN13: 9780415598071
• ISBN10: 0415598079
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-03-08
• Publisher: Routledge

Summary

This book explores the problems of fiscal policy as an instrument of economic and social development in the modern environment, primarily focusing on the transition economies of Eastern Europe, Caucasus, and Central Asia. Evaluating the transformational experience in these countries, this work meets a need for a critical analysis in the aftermath of the 1990s market liberalization reforms, of current trends and to outline the roadmap for future development.

Table of Contents

List of figures	p. xii
List of tables	p. xv
Foreword	p. xvii
Preface	p. xix
Economics of transition in the new century: lessons learned and a future outlook	p. 1
Introduction	p. 1
Before the shock: notes on the political economy from 1960 to 1990	p. 2
What happened in the 1990s: more on political economy	p. 6
Macroeconomic overview of the 2000s	p. 10
Conclusion	p. 23
Appendix	p. 25
Fiscal policy in the newly opened economies: are there twin deficits?	p. 29
Introduction	p. 29
Fiscal balance and current account in the first decades of transition	p. 30
Theory and some empirics of twin deficits reexamined	p. 33
Main theoretical model and data discussion	p. 38
Empirical results analysis	p. 40
Some extensions to the main model	p. 43
Conclusion	p. 56
Appendix	p. 58
Fiscal policy sustainability in transition: is it there?	p. 69
Introduction	p. 69
Transition period fiscal policy trends	p. 70
Some theoretical aspects of fiscal policy in transition	p. 79
Theoretical model and data discussion	p. 82
Empirical results discussion	p. 85
Policy conclusions	p. 90
Innovative fiscal policy: the how, when, and why of borrowing from the diaspora	p. 94
Introduction	p. 94
Fiscal policy for growth and development: transition peculiarities	p. 95
Diaspora and transition economies	p. 98
From "fiscal diamond" to "fiscal net"	p. 101
The Diaspora bond in transition economies	p. 105
Conclusion	p. 111
Appendix	p. 112
Innovative fiscal policy: tackling labor migration problems	p. 118
Introduction	p. 118
Labor migration trends in transition economies	p. 120
Temporary labor migration triad	p. 128
The Diaspora regulatory mechanism	p. 130
The Migration Development Bank	p. 133
Conclusion	p. 137
Appendix	p. 138
J-curve: facing exchange rate and current account fluctuation risks in the open economies of the CIS	p. 140
Introduction	p. 140
What is the J-curve? Exposition and literature review	p. 142
Theoretical model	p. 153
Data description	p. 154
Review of the empirical results	p. 155
Testing for main results robustness	p. 161
Conclusions and policy implications	p. 164
Appendix A	p. 166
Appendix B	p. 176
A model of fiscal policy, currency crisis, and foreign exchange reserves dynamics	p. 181
Introduction	p. 181
Some theory, empirics, and stylized facts of international experience	p. 182
Stylized facts from the CIS	p. 187
A two country-group theoretical model with foreign reserves	p. 192
Numerical analysis and possible scenarios	p. 196
Conclusion and possible policy implications	p. 206
Appendix	p. 209
Fiscal policy lessons for the CIS beyond the economic crisis of 2008-2009	p. 212
Introduction	p. 212
The crisis in the CIS: the case of Russia	p. 213
The crisis in the CIS: the case of the net exporters	p. 222
The crisis in the CIS: the case of (he net importers	p. 226
Policy implications for two country groups	p. 230
Final remarks	p. 233
Endnotes	p. 238
Bibliography	p. 244
Index	p. 256
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