Creating and Using Fiscal Space for Accelerated Development in Liberia
This paper presents simulations for the period 2013-2030 of measures that permit increased spending on infrastructure and human development, the priority areas in Liberia's 2013-2017 "Agenda for Transformation" and for its national v...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/10/18446608/creating-using-fiscal-space-accelerated-development-liberia http://hdl.handle.net/10986/16893 |
| id |
okr-10986-16893 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ADMINISTRATIVE COSTS AGRICULTURAL SECTORS AGRICULTURE BALANCE OF PAYMENTS BANK POLICY BUDGET BUDGET CONSTRAINT BUDGET CONSTRAINTS BUDGETS CAPITAL CAPITAL ACCOUNT CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS COMMODITIES COMMODITY CONSUMPTION CREDIT CREDIT FACILITY CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT DATA AVAILABILITY DEBT DEBT CAPITAL DEBT INTEREST DEBT STOCKS DEMAND CURVES DEVELOPING COUNTRY DEVELOPMENT DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISPOSABLE INCOME DOMESTIC BORROWING DOMESTIC DEBT DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES ECONOMIC ACTIVITIES ECONOMIC GROWTH ECONOMIC POLICY ECONOMY EDUCATION SPENDING EDUCATIONAL ATTAINMENT EDUCATIONAL ATTAINMENTS ELASTICITY EXCHANGE EXPORTS FACTOR DEMAND FACTORS OF PRODUCTION FINANCE FINANCES FISCAL POLICIES FISCAL YEAR FIXED INVESTMENT FOREIGN DEBT FOREIGN DEBTS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN GOVERNMENT FOREIGN INTEREST FOREIGN TRANSACTIONS FULL EMPLOYMENT FUTURE GDP GINI COEFFICIENT GOOD GOVERNMENT BORROWING GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT INVESTMENT GOVERNMENT INVESTMENTS GOVERNMENT REVENUE GOVERNMENT REVENUES GOVERNMENT SPENDING GOVERNMENTS GRANT GRANTS GROSS NATIONAL SAVINGS GROSS REVENUES GROWTH RATE GROWTH RATES HOUSEHOLD HOUSEHOLDS HUMAN DEVELOPMENT IMPORT TARIFFS INCENTIVES INCOME INCOMES INDUSTRY INEQUALITY INFLUENCE INFORMATION SERVICES INFRASTRUCTURE INITIAL INVESTMENT INPUTS INTEREST INTEREST PAYMENTS INTERNAL RATES OF RETURN INTERNATIONAL BANK INTERNATIONAL MARKETS INVESTMENT INVESTMENT CLIMATE INVESTMENT FINANCING INVESTMENT FLOWS INVESTMENT SPENDING LABOR LABOR MARKET LAGS LAND LENDING LOANS MARGINAL PRODUCTIVITY MARGINAL VALUE MARKET MARKET PRICES MARKETS MIDDLE-INCOME COUNTRIES NATIONAL ECONOMY NATURAL RESOURCES NEGATIVE EXTERNALITIES OPERATING SURPLUS OPPORTUNITY COST OPTION OPTIONS OUTCOMES OUTPUT OUTPUTS PAYMENT PAYMENT FLOWS PAYMENTS POLITICAL ECONOMY POSITIVE EFFECTS POVERTY PRESENT VALUE PRICE PRICE CHANGE PRICE CHANGES PRICE LEVELS PRICES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE SAVINGS PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFIT PROFIT MAXIMIZATION PROFITS RAPID GROWTH REAL EXCHANGE RATE REAL GDP REAL INTEREST REAL INTEREST RATES REAL SECTOR RECEIPT RECEIPTS REMITTANCES RENT RETURNS SAVINGS SAVINGS RATE SERVICES SHARE SHARE OF INVESTMENTS SHARES SMALL COUNTRY STRATEGIES STRUCTURAL CHANGE SUPPLY CURVE SUPPLY CURVES SUSTAINABILITY ANALYSIS TARIFFS TAX TAX RATE TAX RATES TAXATION TAXES TELECOMMUNICATIONS THEORY TOTAL FACTOR PRODUCTIVITY TRADE TRADE DEFICIT TRANSACTIONS TRANSACTIONS COSTS TRANSFERS TRENDS TRUST FUND UNEMPLOYMENT UNEMPLOYMENT RATE UTILITY VALUE VARIABLES WAGES WATER SUPPLY WORLD DEVELOPMENT INDICATORS WORLD MARKETS |
| spellingShingle |
ACCOUNTING ADMINISTRATIVE COSTS AGRICULTURAL SECTORS AGRICULTURE BALANCE OF PAYMENTS BANK POLICY BUDGET BUDGET CONSTRAINT BUDGET CONSTRAINTS BUDGETS CAPITAL CAPITAL ACCOUNT CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS COMMODITIES COMMODITY CONSUMPTION CREDIT CREDIT FACILITY CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT DATA AVAILABILITY DEBT DEBT CAPITAL DEBT INTEREST DEBT STOCKS DEMAND CURVES DEVELOPING COUNTRY DEVELOPMENT DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISPOSABLE INCOME DOMESTIC BORROWING DOMESTIC DEBT DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES ECONOMIC ACTIVITIES ECONOMIC GROWTH ECONOMIC POLICY ECONOMY EDUCATION SPENDING EDUCATIONAL ATTAINMENT EDUCATIONAL ATTAINMENTS ELASTICITY EXCHANGE EXPORTS FACTOR DEMAND FACTORS OF PRODUCTION FINANCE FINANCES FISCAL POLICIES FISCAL YEAR FIXED INVESTMENT FOREIGN DEBT FOREIGN DEBTS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN GOVERNMENT FOREIGN INTEREST FOREIGN TRANSACTIONS FULL EMPLOYMENT FUTURE GDP GINI COEFFICIENT GOOD GOVERNMENT BORROWING GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT INVESTMENT GOVERNMENT INVESTMENTS GOVERNMENT REVENUE GOVERNMENT REVENUES GOVERNMENT SPENDING GOVERNMENTS GRANT GRANTS GROSS NATIONAL SAVINGS GROSS REVENUES GROWTH RATE GROWTH RATES HOUSEHOLD HOUSEHOLDS HUMAN DEVELOPMENT IMPORT TARIFFS INCENTIVES INCOME INCOMES INDUSTRY INEQUALITY INFLUENCE INFORMATION SERVICES INFRASTRUCTURE INITIAL INVESTMENT INPUTS INTEREST INTEREST PAYMENTS INTERNAL RATES OF RETURN INTERNATIONAL BANK INTERNATIONAL MARKETS INVESTMENT INVESTMENT CLIMATE INVESTMENT FINANCING INVESTMENT FLOWS INVESTMENT SPENDING LABOR LABOR MARKET LAGS LAND LENDING LOANS MARGINAL PRODUCTIVITY MARGINAL VALUE MARKET MARKET PRICES MARKETS MIDDLE-INCOME COUNTRIES NATIONAL ECONOMY NATURAL RESOURCES NEGATIVE EXTERNALITIES OPERATING SURPLUS OPPORTUNITY COST OPTION OPTIONS OUTCOMES OUTPUT OUTPUTS PAYMENT PAYMENT FLOWS PAYMENTS POLITICAL ECONOMY POSITIVE EFFECTS POVERTY PRESENT VALUE PRICE PRICE CHANGE PRICE CHANGES PRICE LEVELS PRICES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE SAVINGS PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFIT PROFIT MAXIMIZATION PROFITS RAPID GROWTH REAL EXCHANGE RATE REAL GDP REAL INTEREST REAL INTEREST RATES REAL SECTOR RECEIPT RECEIPTS REMITTANCES RENT RETURNS SAVINGS SAVINGS RATE SERVICES SHARE SHARE OF INVESTMENTS SHARES SMALL COUNTRY STRATEGIES STRUCTURAL CHANGE SUPPLY CURVE SUPPLY CURVES SUSTAINABILITY ANALYSIS TARIFFS TAX TAX RATE TAX RATES TAXATION TAXES TELECOMMUNICATIONS THEORY TOTAL FACTOR PRODUCTIVITY TRADE TRADE DEFICIT TRANSACTIONS TRANSACTIONS COSTS TRANSFERS TRENDS TRUST FUND UNEMPLOYMENT UNEMPLOYMENT RATE UTILITY VALUE VARIABLES WAGES WATER SUPPLY WORLD DEVELOPMENT INDICATORS WORLD MARKETS Lofgren, Hans Creating and Using Fiscal Space for Accelerated Development in Liberia |
| geographic_facet |
Africa Liberia |
| relation |
Policy Research Working Paper;No. 6678 |
| description |
This paper presents simulations for the
period 2013-2030 of measures that permit increased spending
on infrastructure and human development, the priority areas
in Liberia's 2013-2017 "Agenda for
Transformation" and for its national vision, Liberia
Rising 2030. The simulations are carried out with a Liberian
version of MAMS (Maquette for Millennium Development Goals
Simulations), a Computable General Equilibrium model.
According to the results, among the key sources of fiscal
space, foreign grants generate the best outcomes followed by
improved government allocative efficiency. Taxes tend to
involve trade-offs since they reduce resources for private
consumption and investment, both of which tend to contribute
to stronger macro and Millennium Development Goals
performance. Increased foreign borrowing is less attractive
since, in order to make a substantial difference, it would
quickly add to the foreign debt, making the economy more
crisis-prone and less flexible. The preferred balance
between different uses of fiscal space depends on payoffs
from different government functions, typically unknown or
only appearing with a lag. Under the parameters used in the
simulations, determined in light of fragmentary evidence,
the outcomes were marginally stronger under a balanced
approach with scaling up of both infrastructure and human
development services. Balanced expansion may also contribute
to efficiency and be easier for political reasons. A final
finding is that it is possible to consider fiscal space
issues in isolation from the mining sector: simulations
suggest that the marginal effects of creating additional
fiscal space are very similar irrespective of the level of
mining export prices. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lofgren, Hans |
| author_facet |
Lofgren, Hans |
| author_sort |
Lofgren, Hans |
| title |
Creating and Using Fiscal Space for Accelerated Development in Liberia |
| title_short |
Creating and Using Fiscal Space for Accelerated Development in Liberia |
| title_full |
Creating and Using Fiscal Space for Accelerated Development in Liberia |
| title_fullStr |
Creating and Using Fiscal Space for Accelerated Development in Liberia |
| title_full_unstemmed |
Creating and Using Fiscal Space for Accelerated Development in Liberia |
| title_sort |
creating and using fiscal space for accelerated development in liberia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/10/18446608/creating-using-fiscal-space-accelerated-development-liberia http://hdl.handle.net/10986/16893 |
| _version_ |
1764434834804965376 |
| spelling |
okr-10986-168932021-04-23T14:03:32Z Creating and Using Fiscal Space for Accelerated Development in Liberia Lofgren, Hans ACCOUNTING ADMINISTRATIVE COSTS AGRICULTURAL SECTORS AGRICULTURE BALANCE OF PAYMENTS BANK POLICY BUDGET BUDGET CONSTRAINT BUDGET CONSTRAINTS BUDGETS CAPITAL CAPITAL ACCOUNT CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS COMMODITIES COMMODITY CONSUMPTION CREDIT CREDIT FACILITY CURRENT ACCOUNT CURRENT ACCOUNT DEFICIT DATA AVAILABILITY DEBT DEBT CAPITAL DEBT INTEREST DEBT STOCKS DEMAND CURVES DEVELOPING COUNTRY DEVELOPMENT DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DEVELOPMENT POLICY DEVELOPMENT STRATEGY DISPOSABLE INCOME DOMESTIC BORROWING DOMESTIC DEBT DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES ECONOMIC ACTIVITIES ECONOMIC GROWTH ECONOMIC POLICY ECONOMY EDUCATION SPENDING EDUCATIONAL ATTAINMENT EDUCATIONAL ATTAINMENTS ELASTICITY EXCHANGE EXPORTS FACTOR DEMAND FACTORS OF PRODUCTION FINANCE FINANCES FISCAL POLICIES FISCAL YEAR FIXED INVESTMENT FOREIGN DEBT FOREIGN DEBTS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN GOVERNMENT FOREIGN INTEREST FOREIGN TRANSACTIONS FULL EMPLOYMENT FUTURE GDP GINI COEFFICIENT GOOD GOVERNMENT BORROWING GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT INVESTMENT GOVERNMENT INVESTMENTS GOVERNMENT REVENUE GOVERNMENT REVENUES GOVERNMENT SPENDING GOVERNMENTS GRANT GRANTS GROSS NATIONAL SAVINGS GROSS REVENUES GROWTH RATE GROWTH RATES HOUSEHOLD HOUSEHOLDS HUMAN DEVELOPMENT IMPORT TARIFFS INCENTIVES INCOME INCOMES INDUSTRY INEQUALITY INFLUENCE INFORMATION SERVICES INFRASTRUCTURE INITIAL INVESTMENT INPUTS INTEREST INTEREST PAYMENTS INTERNAL RATES OF RETURN INTERNATIONAL BANK INTERNATIONAL MARKETS INVESTMENT INVESTMENT CLIMATE INVESTMENT FINANCING INVESTMENT FLOWS INVESTMENT SPENDING LABOR LABOR MARKET LAGS LAND LENDING LOANS MARGINAL PRODUCTIVITY MARGINAL VALUE MARKET MARKET PRICES MARKETS MIDDLE-INCOME COUNTRIES NATIONAL ECONOMY NATURAL RESOURCES NEGATIVE EXTERNALITIES OPERATING SURPLUS OPPORTUNITY COST OPTION OPTIONS OUTCOMES OUTPUT OUTPUTS PAYMENT PAYMENT FLOWS PAYMENTS POLITICAL ECONOMY POSITIVE EFFECTS POVERTY PRESENT VALUE PRICE PRICE CHANGE PRICE CHANGES PRICE LEVELS PRICES PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE SAVINGS PRODUCTION PRODUCTIVITY PRODUCTIVITY GROWTH PRODUCTIVITY INCREASES PROFIT PROFIT MAXIMIZATION PROFITS RAPID GROWTH REAL EXCHANGE RATE REAL GDP REAL INTEREST REAL INTEREST RATES REAL SECTOR RECEIPT RECEIPTS REMITTANCES RENT RETURNS SAVINGS SAVINGS RATE SERVICES SHARE SHARE OF INVESTMENTS SHARES SMALL COUNTRY STRATEGIES STRUCTURAL CHANGE SUPPLY CURVE SUPPLY CURVES SUSTAINABILITY ANALYSIS TARIFFS TAX TAX RATE TAX RATES TAXATION TAXES TELECOMMUNICATIONS THEORY TOTAL FACTOR PRODUCTIVITY TRADE TRADE DEFICIT TRANSACTIONS TRANSACTIONS COSTS TRANSFERS TRENDS TRUST FUND UNEMPLOYMENT UNEMPLOYMENT RATE UTILITY VALUE VARIABLES WAGES WATER SUPPLY WORLD DEVELOPMENT INDICATORS WORLD MARKETS This paper presents simulations for the period 2013-2030 of measures that permit increased spending on infrastructure and human development, the priority areas in Liberia's 2013-2017 "Agenda for Transformation" and for its national vision, Liberia Rising 2030. The simulations are carried out with a Liberian version of MAMS (Maquette for Millennium Development Goals Simulations), a Computable General Equilibrium model. According to the results, among the key sources of fiscal space, foreign grants generate the best outcomes followed by improved government allocative efficiency. Taxes tend to involve trade-offs since they reduce resources for private consumption and investment, both of which tend to contribute to stronger macro and Millennium Development Goals performance. Increased foreign borrowing is less attractive since, in order to make a substantial difference, it would quickly add to the foreign debt, making the economy more crisis-prone and less flexible. The preferred balance between different uses of fiscal space depends on payoffs from different government functions, typically unknown or only appearing with a lag. Under the parameters used in the simulations, determined in light of fragmentary evidence, the outcomes were marginally stronger under a balanced approach with scaling up of both infrastructure and human development services. Balanced expansion may also contribute to efficiency and be easier for political reasons. A final finding is that it is possible to consider fiscal space issues in isolation from the mining sector: simulations suggest that the marginal effects of creating additional fiscal space are very similar irrespective of the level of mining export prices. 2014-02-04T20:37:53Z 2014-02-04T20:37:53Z 2013-10 http://documents.worldbank.org/curated/en/2013/10/18446608/creating-using-fiscal-space-accelerated-development-liberia http://hdl.handle.net/10986/16893 English en_US Policy Research Working Paper;No. 6678 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Liberia |