Fiscal deficits and growth in developing countries

This paper examines the relation between fiscal deficits and growth for a panel of 45 developing countries. Based on a consistent treatment of the government budget constraint, it finds evidence of a threshold effect at a level of the deficit around 1.5% of GDP. While there appears to be a growth pa...

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Bibliographic Details
Main Authors: Adam, C, Bevan, D
Format: Working paper
Published: University of Oxford 2002