A Comparative Analysis of Fiscal Stimulus Effectiveness in Developed versus Emerging Economies: A Multi-Faceted Evaluation

Abstract

In the wake of unprecedented global economic disruptions, this paper investigates the differential impacts of fiscal stimulus measures across developed and emerging economies. Utilizing a comprehensive dataset spanning 2020 to 2023, we employ econometric modeling to appraise the efficacy of diverse fiscal strategies in bolstering economic recovery and growth. Our findings underscore significant disparities; specifically, developed economies demonstrate a more pronounced positive response to targeted fiscal interventions compared to their emerging counterparts. These insights are crucial for policymakers aiming to optimize fiscal strategies in diverse economic contexts. We conclude by proposing tailored recommendations for future fiscal policy design, enhancing resilience against potential economic shocks.