Analyzing the Sustainability of Fiscal Deficits in Developing Countries

Cuddington, John T.

doi:10.1596/1813-9450-1784

Cited by 46 publications

(45 citation statements)

References 34 publications

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“…My findings support the views of Xiomara (2003) for Barbados and Antonio (2004) for European as well as Cuddington (1996) for developing countries. As such the policymaker should pursue their positive path by avoiding excessive decisions and also reinforce the establishment of prudent and consolidated fiscal management.…”

Section: Resultssupporting

confidence: 85%

Fiscal Policy Framework in West African Monetary Zone (WAMZ): The Matter of Debt Sustainability

Mohamed¹

2014

IJEF

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Fiscal sustainability issue is one of the major concerns in macroeconomics. This article seeks to study the sustainability of fiscal policy of six composing members in West African Monetary Zone with the trend of public finance and debt management over a period .We employed unit root and cointegration test to apply the requirement of the present value of budget constraint. This methodology is generally used in the empirical analysis of the historical fiscal sustainability process. To determine this scenario, three variables (GDP, deficit, debt) have been used, in some points the outcome showed that debt is sustainable in Gambia, Ghana, Guinea, Nigeria and Sierra Leone but not in Liberia.

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Section: Resultssupporting

confidence: 85%

Fiscal Policy Framework in West African Monetary Zone (WAMZ): The Matter of Debt Sustainability

Mohamed¹

2014

IJEF

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“…Thus, the debt financing from a long-term perspective is defined with respect to two main approaches (Cuddington, 1996):…”

Section: The Presentation Of the Simple Mathematical Model Of The Pubmentioning

confidence: 99%

Does structural economic vulnerability matter for public indebtedness in developing countries?

Gnangnon

2014

Journal of Economic Studies

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Purpose – The purpose of this paper is to examine the effect of structural economic vulnerability of developing countries on their public indebtedness. Design/methodology/approach – The authors perform the analysis by the use of fixed effects technique where the standard errors are corrected by the Driscoll-Kraay (1998) method. The panel covers 96 developing countries over the period 1980-2008. Findings – The results suggest evidence of a “U-shaped” relationship between the structural vulnerability and the total public debt in developing countries. More particularly in low-income countries (LICs), the structural vulnerability appears to be a strong determinant of the build-up of the total public debt. Research limitations/implications – It would be interesting to extend the research to small Island developing states. Indeed, the authors do not include this group of countries because of lack of data, especially on the variable “quality of governance” for almost all countries of this group. Accordingly, the research should be extended to such countries as well as these data are available. Practical implications – The implications of the study is that international institutions, including those of the Bretton Woods should take into account the structural vulnerability of developing countries when designing development policies, especially the ones related to debt sustainability in developing countries and particularly LICs. Social implications – The fact of the international institutions to take into account the structural vulnerability in the design of international development policy, especially those related to debt issues will have major implications on the macroeconomic policy design by these developing countries as well as on poverty reduction. Originality/value – The added value of this paper is to use recent data on structural vulnerability to analyse the effect of the latter on public indebtdeness of developing countries.

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“…Kedua pendekatan ini didasarkan pada model government fiscal financing constraint (Cuddington, 1996). Model ini menyatakan bahwa: (1) di mana: Bt = jumlahutang (bonds) pemerintah yang beredar (outstanding) pada tahun t; rt = tingkat bunga; SURPB = surplus pada primary balance.…”

Section: Kajian Teoriunclassified

“…Ini berarti kesinambungan fiskal (fiscal sustainability) pemerintah makin terjaga. Hal ini relevan dengan yangdikemukakan oleh Cuddington (1996) dan Buiter (1995).…”

Section: Hasil Dan Pembahasanunclassified

Pembiayaan Defisit dengan Utang dan Ketahanan Fiskal di Indonesia

Suriadi

2013

The Winners

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Analyzing the Sustainability of Fiscal Deficits in Developing Countries

Cited by 46 publications

References 34 publications

Fiscal Policy Framework in West African Monetary Zone (WAMZ): The Matter of Debt Sustainability

Fiscal Policy Framework in West African Monetary Zone (WAMZ): The Matter of Debt Sustainability

Does structural economic vulnerability matter for public indebtedness in developing countries?

Pembiayaan Defisit dengan Utang dan Ketahanan Fiskal di Indonesia

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