The sustainability of Fiji's budget deficit: an econometric analysis

Narayan, S and Narayan, P 2003, 'The sustainability of Fiji's budget deficit: an econometric analysis', Pacific Economic Bulletin, vol. 2, no. 2, pp. 77-90.

Document type: Journal Article
Collection: Journal Articles

Title The sustainability of Fiji's budget deficit: an econometric analysis
Author(s) Narayan, S
Narayan, P
Year 2003
Journal name Pacific Economic Bulletin
Volume number 2
Issue number 2
Start page 77
End page 90
Total pages 14
Publisher Asia Pacific Press
Abstract 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.
Subject Economic Development and Growth
Keyword(s) balance of payments
national economy
ISSN 0817-8038
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Citation counts: Scopus Citation Count Cited 13 times in Scopus Article | Citations
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