| Research Abstract |
Southeast Asian Nations created ASEAN or Association of Southeast Asian Nations in 1967.It increased its members and finally consisted of all ten nations in Southeast Asia In 1999.Their economic growth is characterized by the term export oriented strategy, on the other hand, the role of public finance has been ignored. In this study, I put stress on the mechanism between economic growth and public finance.
In the case of economic crisis in 1997, the public finance played no greater role in their recovery, since the international institution such as the International Monetary Fund intervened the policy formation. Consequently, Thailand and Malaysia which could have expanded the fiscal expenditure succeeded to cease the downturn of economic activity. Contrary to these cases, Indonesia failed to calm down the recession albeit with the initial fiscal surplus.
In my investigation, the relationship between public finance and economic integration was not able to pick up. This remains as the next research agenda.
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