FISCAL POLICY AND GROWTH: COMPERATIVE ANALYSIS OF RUSSIA AND THE OTHER POST SOVIET UNION COUNTRIES

Abstract

After the seperation of the Soviet Union and  the transformation of the economic systems from socialism to capitalism, public policies of old Soviet Nations have also changed. Among these countries, Russia has a special importance due to its economic and fiscal potential and in terms of its inheritance of a strict centralist system.  On the other hand,  aftermath of the scatter of Soviet Union in 1991, Russia met two important economic crises. This study aims to investigate Russian economic and fiscal performance in 1992-2014 after the disintegration and also to compare Old Soviet Nations including 12 countries by using dynamic panel data analysis with the variables of GDP growth, inflation, unemployment, current account balance, public revenues, public expenditures, primary balance, budget balance and public debt. Finally, the study examines the effect of public policies during the transition period on economic growth. 

Keywords

• Economic growth,fiscal policy,public expenditures,primary balance,budget balance,public debt

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