TY - JOUR
T1 - The sustainability of Fiji's budget deficit
T2 - An econometric analysis
AU - Narayan, Paresh Kumar
AU - Narayan, Seema Wati Dhar
N1 - Copyright:
Copyright 2004 Elsevier B.V., All rights reserved.
PY - 2003
Y1 - 2003
N2 - The sustainability of Fiji's budget deficit is examined here within the framework of inter-temporal budget constraint theory, where government revenue is modelled as a function of government expenditure. An error-correction mechanism test for cointegration finds that government revenue and expenditure are cointegrated, which provides some support for the position that Fiji's budget deficit is sustainable in the long run. It is argued that more government expenditure on capital investment will ensure a broader revenue base and reduce the risk of a budget deficit explosion.
AB - The sustainability of Fiji's budget deficit is examined here within the framework of inter-temporal budget constraint theory, where government revenue is modelled as a function of government expenditure. An error-correction mechanism test for cointegration finds that government revenue and expenditure are cointegrated, which provides some support for the position that Fiji's budget deficit is sustainable in the long run. It is argued that more government expenditure on capital investment will ensure a broader revenue base and reduce the risk of a budget deficit explosion.
UR - http://www.scopus.com/inward/record.url?scp=0344984230&partnerID=8YFLogxK
M3 - Article
SN - 0817-8038
VL - 18
SP - 77
EP - 90
JO - Pacific Economic Bulletin
JF - Pacific Economic Bulletin
IS - 2
ER -