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Long-term Issues for Fiscal Sustainability in Emerging Asia

Author

Listed:
  • Kawai, Masahiro

    (Asian Development Bank Institute)

  • Morgan, Peter J.

    (Asian Development Bank Institute)

Abstract

The aftermath of the global financial crisis of 2007–08 underlined the importance of maintaining fiscal space and fiscal sustainability. Even though many Asian economies implemented fiscal stimulus policies during the crisis period, their fiscal conditions generally improved rapidly thereafter, and their overall government debt positions, aside from that of Japan, appear strong. Nonetheless, there are a number of reasons to believe that conditions in emerging Asian economies will not always be so supportive. The first objective of this paper is to identify long-term issues of fiscal sustainability risk for emerging Asian economies. The second objective is to recommend policies to reduce these risks to sustainability.

Suggested Citation

  • Kawai, Masahiro & Morgan, Peter J., 2013. "Long-term Issues for Fiscal Sustainability in Emerging Asia," ADBI Working Papers 432, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0432
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    References listed on IDEAS

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    1. Ferrarini , Benno & Ramayandi, Arief, 2015. "Public Debt Sustainability in Developing Asia: An Update," ADB Economics Working Paper Series 468, Asian Development Bank.
    2. Liu, Lili & Pradelli, Juan, 2012. "Financing infrastructure and monitoring fiscal risks at the subnational level," Policy Research Working Paper Series 6069, The World Bank.
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    5. Adams, Charles & Ferrarini, Benno & Park, Donghyun, 2010. "Fiscal Sustainability in Developing Asia," ADB Economics Working Paper Series 205, Asian Development Bank.
    6. Mahani Zainal Abidin, 2010. "Fiscal Policy Coordination in Asia : East Asian Infrastructure Investment Fund," Macroeconomics Working Papers 21870, East Asian Bureau of Economic Research.
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    Cited by:

    1. MIyamoto Hiroaki & Yoshino Naoyuki, 2021. "Effectiveness of Fiscal Policy in Aging Economies," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 17(3), pages 1-18, November.
    2. Ray, Nikhil. & Velasquez, Agustin. & Islam, Iyanatul,, 2015. "Fiscal rules, growth and employment : a developing country perspective," ILO Working Papers 994881313402676, International Labour Organization.
    3. Zhao, Chuanmin & Qu, Xi, 2021. "Peer effects in pension decision-making: evidence from China's new rural pension scheme," Labour Economics, Elsevier, vol. 69(C).
    4. Baharumshah, Ahmad Zubaidi & Soon, Siew-Voon & Lau, Evan, 2017. "Fiscal sustainability in an emerging market economy: When does public debt turn bad?," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 99-113.
    5. repec:ilo:ilowps:488131 is not listed on IDEAS
    6. Akram, Vaseem & Rath, Badri Narayan, 2020. "Optimum government size and economic growth in case of Indian states: Evidence from panel threshold model," Economic Modelling, Elsevier, vol. 88(C), pages 151-162.
    7. Shinji Asanuma, 2015. "Fiscal Sustainability & Competitiveness in Europe and Asia by Ramkishen S. Rajan , Tan Khee Giap and Tan Kong Yam Palgrave Macmillan , New York , 2014 xii+202. ISBN 978 1 137 40696 5," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(1), pages 194-195, May.
    8. Ramkishen S. Rajan & Khee Giap Tan & Kong Yam Tan, 2015. "Fiscal sustainability in selected developing ASEAN economies," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 11(4/5/6), pages 186-203.

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    More about this item

    Keywords

    fiscal space; fiscal sustainability; emerging asia; emerging asian economies; global financial crisis; fiscal stimulus policies; government debt;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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