The effectiveness of fiscal policy: contributions from institutions and external debts
Purpose – The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. The purpose of this paper is to investigate the effects of fiscal policy on economic growth under contributions from the differences in institutions and external debt levels. Design/methodology/appr...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2018-07-01
|
| Series: | Journal of Asian Business and Economic Studies |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JABES-05-2018-0009/full/pdf?title=the-effectiveness-of-fiscal-policy-contributions-from-institutions-and-external-debts |
| _version_ | 1798036168340668416 |
|---|---|
| author | Nguyen Phuc Canh |
| author_facet | Nguyen Phuc Canh |
| author_sort | Nguyen Phuc Canh |
| collection | DOAJ |
| description | Purpose – The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. The purpose of this paper is to investigate the effects of fiscal policy on economic growth under contributions from the differences in institutions and external debt levels. Design/methodology/approach – The authors use panel data from 2002 to 2014 from 20 emerging markets and use GMM estimators for unbalanced panel data. Findings – The results show positive growth effects of fiscal policy across emerging markets in the examined periods. Notably, the improvement in institutions promotes higher crowding-in effects of fiscal policy. In addition, this paper finds interesting evidences that the external debt has non-linear effects on economic growth, whereas the heterogeneous effects of fiscal policy on economic growth as positive effects in low indebted level and negative effect in high indebted level may explain the mechanism of this non-linear relationship. Originality/value – This study proposes the non-linear relationship of fiscal growth effects in emerging economies under the dynamic of debt levels. |
| first_indexed | 2024-04-11T21:08:43Z |
| format | Article |
| id | doaj.art-4e7067c8e57341789c0831f85319ced0 |
| institution | Directory Open Access Journal |
| issn | 2515-964X |
| language | English |
| last_indexed | 2024-04-11T21:08:43Z |
| publishDate | 2018-07-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Asian Business and Economic Studies |
| spelling | doaj.art-4e7067c8e57341789c0831f85319ced02022-12-22T04:03:08ZengEmerald PublishingJournal of Asian Business and Economic Studies2515-964X2018-07-01251506610.1108/JABES-05-2018-0009611285The effectiveness of fiscal policy: contributions from institutions and external debtsNguyen Phuc Canh0University of Economics Ho Chi Minh City, Ho Chi Minh City, VietnamPurpose – The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. The purpose of this paper is to investigate the effects of fiscal policy on economic growth under contributions from the differences in institutions and external debt levels. Design/methodology/approach – The authors use panel data from 2002 to 2014 from 20 emerging markets and use GMM estimators for unbalanced panel data. Findings – The results show positive growth effects of fiscal policy across emerging markets in the examined periods. Notably, the improvement in institutions promotes higher crowding-in effects of fiscal policy. In addition, this paper finds interesting evidences that the external debt has non-linear effects on economic growth, whereas the heterogeneous effects of fiscal policy on economic growth as positive effects in low indebted level and negative effect in high indebted level may explain the mechanism of this non-linear relationship. Originality/value – This study proposes the non-linear relationship of fiscal growth effects in emerging economies under the dynamic of debt levels.https://www.emerald.com/insight/content/doi/10.1108/JABES-05-2018-0009/full/pdf?title=the-effectiveness-of-fiscal-policy-contributions-from-institutions-and-external-debtsinstitutionseffectivenessfiscal policyexternal debt |
| spellingShingle | Nguyen Phuc Canh The effectiveness of fiscal policy: contributions from institutions and external debts Journal of Asian Business and Economic Studies institutions effectiveness fiscal policy external debt |
| title | The effectiveness of fiscal policy: contributions from institutions and external debts |
| title_full | The effectiveness of fiscal policy: contributions from institutions and external debts |
| title_fullStr | The effectiveness of fiscal policy: contributions from institutions and external debts |
| title_full_unstemmed | The effectiveness of fiscal policy: contributions from institutions and external debts |
| title_short | The effectiveness of fiscal policy: contributions from institutions and external debts |
| title_sort | effectiveness of fiscal policy contributions from institutions and external debts |
| topic | institutions effectiveness fiscal policy external debt |
| url | https://www.emerald.com/insight/content/doi/10.1108/JABES-05-2018-0009/full/pdf?title=the-effectiveness-of-fiscal-policy-contributions-from-institutions-and-external-debts |
| work_keys_str_mv | AT nguyenphuccanh theeffectivenessoffiscalpolicycontributionsfrominstitutionsandexternaldebts AT nguyenphuccanh effectivenessoffiscalpolicycontributionsfrominstitutionsandexternaldebts |