4 Growth, Governance, and Fiscal Policy Transmission Channels in Low-Income Countries
Author:
Emanuele Baldacci
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Language:
English
Print Publication Date:
17 Sep 2004
Keywords:
BOOK; country; user payment; per capita income; francophone country; recipient country; exchange rate; hazard function; Health care spending; Africa; Western Hemisphere; Sub-Saharan Africa; Global; Asia and Pacific; factor productivity; low-deficit dummy; investment ratio; investment equation; production function; Government debt management; Private investment; Government debt planning; Inflation

Abstract

“Expansionary fiscal contractions” occur when sustained reductions in government budget deficits increase GDP or growth of real income. Evidence of expansionary fiscal contractions for high-income countries, following reductions in public spending rather than increases in government revenues, is reported by Giavazzi and Pagano (1990), Bertola and Drazen (1993), Alesina and Perotti (1995), and Alesina (1997); Drazen (2001) reviews the evidence regarding high-income countries. Evidence indicating the presence of expansionary fiscal contractions in low-income countries is reported by Gupta et al. (2002, 2004).

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Cover Helping Countries Develop
Helping Countries Develop
The Role of Fiscal Policy
ISBN:
9781589063181
Publication Date:
17 Sep 2004
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589063181.071
Pages:
540
Front Matter
1 Fiscal Policy for Economic Development: An Overview
I Macroeconomic Policy in Developing Countries
II Public Spending and the Millennium Development Goals
III Revenues and Growth
IV. Fiscal Policy and Aid
V. Special Topics

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