Fiscal Spending and Economic Growth: Some Stylized Facts

World Development

Volumn 40, Issue 9, 2012, Pages 1750-1761

  Carrère, Céline ^a,b,c   de Melo, Jaime ^a,b,c  

^a UNIVERSITY OF GENEVA   (Switzerland)

^b Health Economics Program   (France)

^c CEPR   (United Kingdom)

Author keywords

Developing countries; Event analysis; Fiscal space; Growth acceleration; Primary spending

Indexed keywords

DATABASE; DEVELOPING WORLD; ECONOMIC GROWTH; ECONOMIC THEORY; EXPENDITURE; FISCAL POLICY; MACROECONOMICS; PROBABILITY; TERMS OF TRADE; THEORETICAL STUDY; TRADE LIBERALIZATION;

EID: 84863185410     PISSN: 0305750X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.worlddev.2012.04.011     Document Type: Article

References (30)

1. Adam C.S., Bevan D.L. Fiscal deficits and growth in developing countries. Journal of Public Economics 2005, 89:571-597.
2. Alesina A., Campante F., Tabellini G. Why is fiscal policy often procyclical?. Journal of the European Economic Association 2008, 6(5):1006-1036.
3. Bai J., Perron P. Estimating and testing linear models with multiple structural changes. Econometrica 1998, 66(1):47-78.
4. Bai J., Perron P. Computation and analysis of multiple structural change models. Journal of Applied Econometrics 2003, 18:1-22.
5. Barro J.R. Government spending in a simple model of endogenous growth. Journal of Political Economy 1990, 98:103-125.
6. Bose N., Haque M.E., Osborn D.R. Public expenditure and economic growth: A disaggregated analysis for developing countries. The Manchester School 2007, 75(5):533-556.
7. Calderón, C. A., & Servén, L. (2004). The effects of infrastructure development on growth and income distribution. World Bank Policy Research Working Paper No. 3400.
8. Carrère, C., & de Melo, J. (2007). Fiscal spending and economic growth: Some stylized facts. World Bank Policy Research Working Paper No. 4452.
9. Chalk, N., & Hemming, R. (2001). Assessing fiscal sustainability in theory and practice. IMF Working Paper No. 00/81.
10. Devarajan S., Swaroop V., Zou H.-F. The composition of public expenditure and economic growth. Journal of Monetary Economics 1996, 37:313-344.
11. Easterly, W., & Rebelo, S. (1993). Fiscal policy and economic growth: An empirical investigation. NBER Working Paper No. 4499.
12. Easterly W., Kremer M., Pritchett L., Summers L. Good policy or good luck? Country growth performance and temporary shocks. Journal of Monetary Economics 1993, 32(3):459-483.
13. Estache, A., Gonzalez, M., & Trujillo, L. (2007). Government expenditures on education, health, and infrastructure: A naïve look at levels, outcomes, and efficiency. World Bank Policy Research Working Paper No. 4219.
14. Frankel, J. A., Végh, C. A., & Vuletin, G. (2011). On graduation from fiscal procyclicality. NBER Working Paper No. 17619.
15. Gavin, M., & Perotti, R. (1997). Fiscal policy in Latin America. NBER Macroeconomics Annual 1997 (Vol. 12, pp. 11-72). MIT Press.
16. Gupta S., Clements B., Baldacci E., Mulas-Granados C. Fiscal policy, expenditure composition, and growth in low-income countries. Journal of International Money and Finance 2005, 24(3):441-463.
17. Hausmann R., Pritchett L., Rodrik D. Growth accelerations. Journal of Economic Growth 2005, 10:303-329.
18. Heller, P. S. (2005). Understanding fiscal space. IMF Policy Discussion Paper, PDP/05/4.
19. Heston, A., Summers, R., & Aten, B. (2006). Penn world table version 6.2. Center for international comparisons of production, income and prices at the University of Pensylvania, September 2006.
20. Ilzetski, E., & Végh, C. (2008). Procyclical fiscal policy in developing countries: Truth or fiction? NBER Working Paper No. 14191.
21. Jones B., Olken B. The anatomy of start-stop growth. The Review of Economics and Statistics 2008, 90(3):582-585.
22. Kaminsky, G., Reinhart, C., & Vegh, C. (2004). When it rains, it pours: Procyclical capital flows and macroeconomic policy. NBER Macroeconomics Annual 1994 (Vol. 19, pp. 11-84). MIT press.
23. Kneller R., Bleaney M., Gemmell N. Fiscal policy and growth: Evidence from OECD countries. Journal of Public Economics 1999, 74:171-190.
24. Loayza N., Raddatz C. The structural determinants of external vulnerability. World Bank Economic Review 2007, 21(3):359-387.
25. Perotti, R. (2007). Fiscal policy in developing countries: A framework and some questions. World Bank Policy Research Working Paper No. 4365.
26. Talvi E., Végh C. Tax base variability and procyclicality of fiscal policy. Journal of Development Economics 2005, 78(1):156-190.
27. Tornell A., Lane P. The voracity effect. American Economic Review 1999, 89:22-46.
28. Végh, C., & Vuletin, G. (2012). How is tax policy conducted over the business cycle? NBER Working Paper No. 17753.
29. Wacziarg R., Welch K.H. Trade liberalization and growth: New evidence. World Bank Economic Review 2008, 22(2):187-231.
30. World Bank (2007). Fiscal policy for growth and development: Further analysis and lessons from country case studies. Background Report No. 4, Joint World Bank and IMF Development Committee (Washington).