Fiscal Sustainability in the G-7 Countries

Guleryuz, Ece H.

doi:10.1007/978-3-319-47021-4_10

Cited by 2 publications

(1 citation statement)

References 10 publications

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“…The surge in public debt increases high risks to future debt crises (Chudik et al, 2017). The crisis adversely affects the debt sustainability due to rapid surge in healthcare expenditures (Guleryuz, 2017). The recent initiatives to ease debt distress in poor countries were unsustainable (IMF, 2016).…”

Section: Review Of Literaturementioning

confidence: 99%

Leveraging Green Bonds to Address Debt Sustainability and Economic Recovery in South Asia: Lessons from EU and ASEAN Countries

Falendra Kumar Sudan

2023

REDR

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This paper intends to analyze how green bond markets can address debt sustainability and post-COVID-19 economic recovery in South Asia and draws lessons from the European Union (EU) and Association of Southeast Asian Nations (ASEAN) countries using desk approach and survey of grey literature. The study reveals that COVID-19 crisis induced the European governments to launch innovative bonds such as social and sustainability bonds to meet large public finances for pandemic and post-pandemic recovery actions, while issuance of green bonds in ASEAN region has been quite slow but remained positive despite declining trend in global market in 2020. Robust policies and regulations have been developed and implemented in the EU and ASEAN regions, whereas development of green bond markets in South Asian countries has been facing numerous barriers. The roadmap to promote green bond markets in South Asia should focus on following broad policy issues: primary policies, established instruments, innovative products and new strategies. The primary policy options should focus on building and strengthening infrastructure for development of green bond markets. In this context, the policies should focus on developing a shelf of climate-compatible green projects to achieve inclusive and sustainable post-COVID-19 recovery and to meet the sustainable development goals. Local bond markets should be bolstered to issue innovative green bonds and tactical public green bonds to finance the post-COVID-19 recovery in South Asian countries. The compatible EU and ASEAN green bond standards should be replicated with suitable modifications to develop South Asian country-specific green and sustainable bond standards.

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Section: Review Of Literaturementioning

confidence: 99%

Leveraging Green Bonds to Address Debt Sustainability and Economic Recovery in South Asia: Lessons from EU and ASEAN Countries

Falendra Kumar Sudan

2023

REDR

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Fiscal sustainability in developing Asia – new evidence from panel correlated common effect model

Bui

2019

JABES

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Purpose The purpose of this paper is to investigate the problem of fiscal sustainability for a panel of developing Asian economies. Design/methodology/approach In this study, cross-section dependence and heterogeneity are controlled while estimating the fiscal reaction function, which shows how governments react to the accumulation of public debt. The study employs the common correlated effects mean group estimator in Pesaran (2006) for a panel of 22 developing Asian economies for the period 1999‒2017. Findings It is found that the fiscal sustainability issue in the region is not so benign as in previous studies. Overall, fiscal policy is unsustainable, even for the nonlinear fiscal rule. Country-specific long-run coefficients are also examined in the study. Research limitations/implications The findings show that many developing economies in the region could not satisfy the intertemporal budget constraint, which raises concerns about debt sustainability in the area, especially for the post-crisis period. Originality/value This study investigates whether governments can maintain the sustainability of public finances in the long-run, if the ratios of public debt over GDP and primary deficit over GDP continue their recent problematic trends. Another novelty is controlling for heterogeneous effects among the countries in the region to give a more precise picture of debt sustainability. The empirical evidence also supports that insolvency risk can occur at low levels of public debt.

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Fiscal Sustainability in the G-7 Countries

Cited by 2 publications

References 10 publications

Leveraging Green Bonds to Address Debt Sustainability and Economic Recovery in South Asia: Lessons from EU and ASEAN Countries

Leveraging Green Bonds to Address Debt Sustainability and Economic Recovery in South Asia: Lessons from EU and ASEAN Countries

Fiscal sustainability in developing Asia – new evidence from panel correlated common effect model

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