The role of institutional quality on fiscal consolidation in developing countries
This paper examines the effect of institutional quality on the effort of fiscal consolidation in developing countries during 1980-2008. The panel generalized method of moments (GMM) results indicate that better quality of institutions tend to reduce the deficit budget accounts and the debt-to-GDP ra...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2012
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| Online Access: | http://psasir.upm.edu.my/id/eprint/51269/1/12-20.pdf |
| Summary: | This paper examines the effect of institutional quality on the effort of fiscal consolidation in developing countries during 1980-2008. The panel generalized method of moments (GMM) results indicate that better quality of institutions tend to reduce the deficit budget accounts and the debt-to-GDP ratios in developing countries. The stronger institutions allow these countries to involve in more fiscal expansionary programs as well as to achieve a higher sustainable level of debts. |
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