The Significance of Japan's Fiscal Investment and Loan Program during Japan's Period of Rapid Economic Growth and Possible Lessons for the Rest of Asia
22 Pages Posted: 25 Dec 2013
During the late 1950s and early 1960s, when Japan experienced a period of rapid economic growth comparable to that of many other Asian countries today, government fiscal policy was largely facilitated by the Fiscal Investment and Loan Program ("FILP"). This paper examines whether it would be applicable for other Asian countries to adopt the FILP-like approach, and, if so, which aspects they should focus on in order to make the most of such a program. Asian countries have a wide range of options besides FILP for financing the demand for infrastructure they are likely to face and, if they are to continue to enjoy solid economic growth, will need to decide on a suitable means (or combination of means) of raising the necessary capital and regularly reassess whether the option they have chosen is still the most efficient and effective means of doing this.
Keywords: Japan, public finance, budget, fiscal loan and investment program, FILP
JEL Classification: A11, B25, H00, H30, H60, H70, N45
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