Are Pension Obligations, Public Office Salaries and Investment on Social Projects Hurting Fiscal Sustainability? A Panel Data Analysis of ASEAN Countries
DOI:
https://doi.org/10.61841/hemsbb60Keywords:
Pension Obligations, Office, Salaries, Investment on Social Projects, Fiscal Sustainability, ASEAN, PanelAbstract
Fiscal sustainability is the implementation of economic policies which enables the stabilization of the net value of ratio of budget deficit. This value is usually expressed as a difference among the budget expense and the budget revenue. Pension obligations, office salaries, and investment on social projects are the aspects that are crucial for any government as well as the economy of a country and they might also impact the fiscal sustainability of the country. In this context, the current study was designed in order to investigate the impact of pension obligations, office salaries and investment on social projects on fiscal sustainability in different ASEAN countries. In order to fulfill this aim, the researcher has collected data from 6 ASEAN countries i.e. Brunei, Cambodia, Indonesia, Laos, Thailand and Philippines for a period of 30 years. The major tests applied on the collected data include cross sectional dependence test, CIPS unit root test, LM Bootstrap cointegration test, AMG estimation and panel casualty test. The results obtained from these tests suggest that the impact of pension obligation, office salaries and investment in social projects on fiscal sustainability are found as significant. The theoretical and practical implications along with the limitations of the study have been discussed in the last of the study.
Downloads
Published
Issue
Section
License
Copyright (c) 2020 AUTHOR
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.