Fiscal Policy and Economic Growth: Lessons for Eastern Europe and Central Asia
Cheryl Williamson Gray, Tracey Lane, Aristomène Varoudakis
World Bank Publications, 2007 - Political Science - 331 pages
Worldwide experience highlights public finance policies that promote economic growth while meeting the need for fundamental public goods. Macroeconomic stability is essential, as large budget deficits retard growth, followed by moderate levels of public spending - around one-third of GDP or less - especially when governance and public administration are weak; that in turn requires efficiency, particularly in areas such as infrastructure, health, education, and social protection; finally, lower income and payroll tax rates can spur investment and employment. The Eastern European and Central Asia countries pioneered flat income taxes without generally suffering revenue losses as a result, but they have not addressed the problem of high payroll taxes and still face many hurdles in improving the efficiency and effectiveness of public spending and revenue generation.
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Albania Armenia average Bank staff calculations benefits Bosnia and Herzegovina budget capita GDP Chile comparator countries coun coverage Croatia ECA and comparator ECA countries ECA fiscal database ECA focus countries ECA region economic growth effect efficiency employer employment figure fiscal adjustment fiscal balance fiscal deficits fiscal space flat tax funding GDP per capita Georgia health spending higher impact improve increase infrastructure investment Ireland Korea Kyrgyz Republic labor taxes lower ment Moldova non-ECA OECD out-of-pocket overall payments payroll taxes pension system percent of GDP percentage points personal income tax Poland population primary fiscal public expenditures public finance public sector public spending ratio reduce regression road Romania sample significant Slovak Rep Slovak Republic social security contributions Source Spain structure tariffs tax effort tax rates tax revenues tax wedge taxation Thailand tion transition Turkey Uganda Ukraine variables Vietnam wage World Bank
Page 312 - co-generation" is used. ECU European Currency Unit EU The European Union, whose members are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.
Page 156 - The improvement in human capital seems to be a common factor behind the growth process of the past decades in all OECD countries, but especially so in Italy, Greece, Ireland and Spain where the increase in human capital accounted for more than half a percentage point acceleration in growth in the 1990s with respect to the previous decade.
Page 179 - May 2004 are the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic and Slovenia.
Page 98 - Significant at 10 percent level ** Significant at 5 percent level *** Significant at 1 percent level...
Page 284 - Difference between the labor cost to the employer and the net take-home pay of the employee, in percent of the labor cost. Figure 5.12. Contributions to the Annual Change in Labor Share1 (Percentage points) Labor globalization and technological progress have acted to reduce the labor share, with the impact of technological progress being somewhat larger, while changes in labor market policies...
Page 308 - Albania Armenia Azerbaijan Belarus Bosnia and Herzegovina Bulgaria Croatia Czech Republic Estonia Georgia Hungary Kazakhstan Kyrgyz Republic Latvia Lithuania Macedonia, FYR Moldova Poland Romania Russian Federation Serbia and Montenegro Slovak Republic Tajikistan Turkey Turkmenistan Ukraine Uzbekistan...
Page xxii - ... Normalised Tax Yield (NTY) and Average Bribe Tax 123 Figure 6. 1 Tax Ratio and Est. Tax Capacity 142 List of Abbreviations ACIR Advisory Commission on Intergovernmental Relations BEEPS Business Environment and Enterprise Performance Survey CBR Central Bank of Russia CEE Central and Eastern European CIS Commonwealth of Independent States CIT Corporate Income Tax CMEA Council for Mutual Economic Assistance CPI Consumer Price Index CPI Corruption Perceptions Index EBRD European Bank for Reconstruction...
Page 3 - Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Romania, and Serbia and Montenegro...