Sustainability of the Fiscal Imbalance and Public Debt Under Fiscal Policy Asymmetries in Opec

Document Type : Research Paper

Authors

1 PhD student, Department of Economics, University of Mazandaran, Mazandaran, Iran.

2 Professor, Department of Theoretical Economics, University of Mazandaran, Mazandaran, Iran

3 Associate Professor, Department of Energy Economics University of Mazandaran, Mazandaran, Iran

Abstract

Considering that fiscal imbalance is one of the basic problems of governments in most countries faced by governments in most countries, today, the international Society places significant importance on the fiscal imbalances of countries, and a low level has become one of the important indicators of public finance health. Since there is an expectation of asymmetry in the budget adjustment process, this article aimed to investigate the sustainability of fiscal imbalance and public debt in the conditions of asymmetric fiscal policy in OPEC during the annual period of 2002-2021. In this regard, testing for fiscal imbalance and public debt sustainability is used to estimate the symmetric Panel ARDL and asymmetric Panel NARDL. The results indicate that the fiscal imbalance and public debt are on the path of weak sustainability. The analysis of asymmetric coefficients with the estimation of the Fiscal reaction function shows that the Fiscal policy stance is procyclical, with strong stabilization Tendencies in economic booms and an unstable state in recessions. Against upsurges in the debt-to-GDP ratio, authorities have been found to pursue fiscal integration, so this situation shows a weak form of sustainability

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Main Subjects

References

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Quarterly Journal of Applied Theories of Economics
Volume 12, Issue 44
June 2025
Pages 1-24

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