Title: Fiscal discipline and competitiveness in newly industrialised economies: lessons from the Nordics model

Authors: Ramkishen S. Rajan; Khee Giap Tan; Kong Yam Tan

Addresses: Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore, 469A Bukit Timah Road, Level 2 Tower Block, 259770, Singapore ' Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore, 469A Bukit Timah Road, Level 2 Tower Block, 259770, Singapore ' Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore, 469A Bukit Timah Road, Level 2 Tower Block, 259770, Singapore

Abstract: This paper assesses selected fiscal and competitiveness issues in the newly industrialised economies (NIEs) of Hong Kong, Singapore, (South) Korea and Taiwan since the Asian financial crisis. The NIEs have been globally competitive and successful in maintaining a high degree of fiscal discipline up until the global financial crisis. Despite the temporary worsening of their fiscal balances due to the cyclical downturn, most of the NIEs have bounced back without apparent long-lasting negative repercussions. The paper also undertakes fiscal sustainability computations for the NIEs to assess their fiscal space and also discusses the new Nordics welfare model.

Keywords: newly industrialised economies; NIEs; fiscal sustainability; fiscal buffers; competitiveness; demographics; social expenditure; fiscal discipline; Nordic model; Hong Kong; Singapore; South Korea; Taiwan; welfare model

DOI: 10.1504/IJSE.2015.068680

International Journal of Sustainable Economy, 2015 Vol.7 No.2, pp.118 - 139

Received: 15 Sep 2014
Accepted: 25 Sep 2014

Published online: 30 Mar 2015 *

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