Structural determinants of government budget deficits in developing countries

Morrison, Thomas K.

doi:10.1016/0305-750x(82)90003-1

Cited by 8 publications

(17 citation statements)

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“…Instability and growth in government revenues. Affecting developing countries more strongly, the instability of government revenue is considered by Morrison (1982) as a structural determinant of budget deficits. It can have negative consequences on public investment (Ebeke and Ehrhart, 2012) and therefore on growth.…”

Section: Macroeconomic Environmentmentioning

confidence: 99%

“…It can have negative consequences on public investment (Ebeke and Ehrhart, 2012) and therefore on growth. Countries facing higher volatility in government revenues may have larger government deficits, to the extent that some government spending is incompressible or socially difficult to reduce (Morrison, 1982). In addition to instability, growth in government revenue (excluding inflation) could influence countries' structural budgetary performance.…”

Section: Macroeconomic Environmentmentioning

confidence: 99%

“…The fiscal balance is the consequence of various macroeconomic, political, demographic, institutional and social factors. Since the early 1980s, several empirical studies have focused on the determinants of public deficits (see, among others, Morrison, 1982;Roubini and Sachs, 1989;Roubini, 1991;Woo, 2003a;Tujula and Wolswijk, 2004;Steiner, 2017). Although some of these studies involve developing countries and emerging economies (Morrison, 1982;Roubini, 1991 andWoo, 2003a), the sample of these countries is often limited due to data availability over the study period.…”

Section: Introductionmentioning

confidence: 99%

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Robust structural determinants of public deficits in developing countries

Gnimassoun

Santos

2020

Applied Economics

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Many macroeconomic, institutional, demographic, social and political variables have been proposed by previous studies as significant determinants of public deficits in developing countries. This paper asks whether their estimated impact on public deficits is robust under thousands of possible alternative specifications. We deal with model uncertainty using Sala-i-Martin's Extreme Bound Analysis. Our results clearly show that external shocks, the debt ratio, financial development, the level of democracy and government control over expenditures are robustly associated with fiscal deficits. Public deficits are lower in countries which provide better stability of public expenditure in the face of revenue instability and which are less exposed to negative external shocks. In contrast, fiscal deficits increase with the debt ratio, financial development and the level of democracy. The relative importance of external shocks in all the regressions argues in favour of greater economic diversification in order to mitigate the impact of negative shocks on public finances.

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Section: Macroeconomic Environmentmentioning

confidence: 99%

Section: Macroeconomic Environmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Robust structural determinants of public deficits in developing countries

Gnimassoun

Santos

2020

Applied Economics

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“…Prest identified the 'emergence of strong local opinions' as a major spending pressure on the governments of low-income countries [Prest, 1972]. The spread of education, modern communications, international migration and foreign presence in low-income countries have all contributed to a demonstration effect that leads to pressure on governments to improve public services [Morrison, 1982]. Health, education, shelter, etc.…”

Section: Important Causes Of the Recurrent Cost Problemmentioning

confidence: 99%

The recurrent cost problem in the least developed countries

Jennings

1983

The Journal of Development Studies

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The manifestation of the recurrent cost problem at the micro and macro levels is continuing, if not worsening, least development. The article examines the causes of the recurrent cost problem and shows that there is no one simple cause, and that responsibility lies in varying degrees between the least developed country governments and their aid partners. Given the diversity of the possible causes of the recurrent cost problem, a broad package of measures, including domestic policy changes and international support measures, are proposed.

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“…In other words, large public sector deficits are more generally, inappropriate expenditure and revenue policies have been identified as an important source of the disequilibrium. Hence, several hypotheses had been proposed regarding the major causes of the phenomenon (Morrison, 1982). These include slow or stagnating growth of government revenue; government revenue instability and poor government control over expenditures.…”

Section: Introductionmentioning

confidence: 99%

Fiscal Responsibility and Economic Efficiency: A Functional Approach

Nwaobi

2009

SSRN Journal

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Structural determinants of government budget deficits in developing countries

Cited by 8 publications

References 0 publications

Robust structural determinants of public deficits in developing countries

Robust structural determinants of public deficits in developing countries

The recurrent cost problem in the least developed countries

Fiscal Responsibility and Economic Efficiency: A Functional Approach

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