Nonlinear Effects of the Financial Crisis on Economic Growth in Asian Countries: Empirical Evaluation with a Pstr Model
نویسندگان
چکیده
The objective of this paper is to evaluate the effectiveness of fiscal policy in emerging countries in periods of crisis. We study the effect of fiscal policy on economic activity distinguishing between periods of recession and expansion periods. Our goal will be to explore the nonlinear effect of fiscal policy in Asian emerging countries on the activity during periods of crisis. We use the PSTR model. This model is used on annual data for the period 1990-2013 for a sample of 8 emerging Asian countries. Our main findings are the following: First, this study confirmed that the PSTR model is more robust comparing it to a simple linear model. Indeed, it can highlight the asymmetric effect of fiscal policy on economic activity. Second, the nonlinearity of fiscal policy is explained by the phases of cycles and the level of public debt. © 2016 AESS Publications. All Rights Reserved.
منابع مشابه
Investigating the Impact of Developing Financial Markets and Tax Revenues on Economic Growth in Southeast Asian Countries
The purpose of this paper is to investigate the impact of the development of financial markets and tax revenues on economic growth in Southeast Asian countries using data from the period 1980-1980. For this purpose, a supply-oriented endogenous growth pattern and due to the nonlinear relationship between the research variables, the PSTR model has been used. In this study, three indicators of fi...
متن کاملEconomic growth, Financial development and CO2 Emission: PSTR Approach
The aim of this paper is to assess the sign and magnitude of the nonlinear effects of main socio-economic variables as well as the financial development index(measured by private credit to GDP ratio) on the environmental pollution. Specifically, the interaction of the socio-economic variables with financial development as a threshold variable in affecting CO2 emission is studied. In this respec...
متن کاملMonetary Policies, Exchange Rate Pass-through and Prices in Asian Economies: A Long and Short-run Analysis
Abstract T he financial crisis in 2007-2008 has turned into the most far-reaching international financial and economic crisis since the Great Depression. Indeed, the crisis-affected Asian countries experienced varying degrees of changes in the exchange rate and prices following an initial shock of sharp depreciation of their currencies in the second half of 1997. Moreover,...
متن کاملRelationship between Ecological Footprint and Economic Growth in D8 Countries: Testing the Kuznets Environmental Hypothesis Using PSTR Model
This study examines the Kuznets environmental curve among D8 countries in the period 1961–2016. The Kuznets environmental curve shows the reversed U-shaped relationship between economic growth and environmental degradation. In this paper, two methods of time series estimation and smooth panel transition estimation were used to test the hypothesis of this relationship. Also, the ecological footp...
متن کاملResponsiveness of the MENA Economic Growth to the EU Financial Integration: A Problem Evaluation
Department of Economics, University of Isfahan, Iran  Ahmad Googerdchian  Assistant Professor, Department of Economics, University of Isfahan, Iran   Abstract  Implementing a currency :::union::: may lead members to face financial crisis if their financial markets are not ready to adopt themselves to a new situation. There are still problems like ownership concentration and self-gover...
متن کامل