Government public infrastructure investment and economic performance in Spain (1980–2016)

Pérez-Montiel, Jose; Manera, Carles

doi:10.1108/aea-03-2021-0077

Cited by 9 publications

(4 citation statements)

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“…So, for example, the multipliers of government spending, including military spending, in different periods of society development (periods of recession and expansion) were studied in order to choose directions in fiscal policy for economic recovery [10]. Or in another work: according to panel data from Spain, which has long been distinguished by "regional inequality in terms of economic indicators and development" [11], the nature of the correlation between the implementation of a policy of fiscal expansion or austerity from the value of the multiplier of public spending is also determined. The research results of the World Bank specialists show the multipliers of public investment with the highest value, "about 1.5 (on average for all states of the economy), which means that a dollar of public investment leads to 1.5 dollars of economic activity" [11].…”

Section: Discussionmentioning

confidence: 99%

“…Or in another work: according to panel data from Spain, which has long been distinguished by "regional inequality in terms of economic indicators and development" [11], the nature of the correlation between the implementation of a policy of fiscal expansion or austerity from the value of the multiplier of public spending is also determined. The research results of the World Bank specialists show the multipliers of public investment with the highest value, "about 1.5 (on average for all states of the economy), which means that a dollar of public investment leads to 1.5 dollars of economic activity" [11]. The evaluation of the multiplier of public spending in the euro area countries using the econometric method was carried out by Vicente Ferreira and others.…”

Section: Discussionmentioning

confidence: 99%

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Multiplier of consumer expenditures in the model of economic management of water resources of the Kyrgyz Republic

Fynchina,

Tadzhibaeva

et al. 2024

BIO Web Conf.

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The expenses of the population are one of the main factors determining aggregate demand, which creates the basis for the reproductive process and economic development of the state. The volume of aggregate demand in the Kyrgyz Republic is largely determined by the development of trade and economic cooperation with China. This justifies the relevance of assessing their impact on economic growth against the background of new challenges of various kinds in the conditions of unstable social and economic development of Kyrgyzstan. The relations of trade indicators with China and GDP, the value of final consumption of Kyrgyz households as part of GDP in comparison with other countries are shown. The calculated indicators of marginal propensities to consumption and saving are analyzed; the multiplier of expenditures for Kyrgyzstan. A noticeable dependence of the indicator of economic development and foreign trade activity with the use of statistical and economic-mathematical methods with an acceptable coefficient of elasticity has been revealed. Conclusions are drawn about the impact of consumer spending on aggregate demand and changes in GDP, about the correspondence of real processes to the Keynesian theory of the investment multiplier and individual deviations from it in a developing economy.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Multiplier of consumer expenditures in the model of economic management of water resources of the Kyrgyz Republic

Fynchina,

Tadzhibaeva

et al. 2024

BIO Web Conf.

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“…The creation of hubs is driven by the need to ensure economic growth (Crescenzi & Rodríguez-Pose, 2008;Rodríguez-Pose, Crescenzi & Di Cataldo, 2015;Perez-Montiel & Manera, 2021), productivity and the formation of infrastructure networks (Zhang, Janic & Tavasszy, 2015;Romero & Van Waeyenberge, 2020). Infrastructure and logistics hubs are crucial in the location of companies, especially when making decisions concerning foreign investment.…”

Section: Literature Reviewmentioning

confidence: 99%

The experience of EU countries towards the development of infrastructure and logistics hubs

Slatvinska

Kibik

Онешко

et al. 2021

RDLUZ

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The objective of the study is to assess the development of infrastructure and logistics hubs using the example of the EU countries, namely: Germany, Spain and Poland. The methodology is based on a comparative analysis of infrastructure hubs development indicators in Germany, Spain and Poland according to InfraCompass. Results. The general policy and strategy of the EU as a supranational institution determines the strategic goals and policies of Germany, Spain, and Poland in the field of infrastructure and logistics development. The EU provides financial incentives, political and administrative support for infrastructure hubs and logistics. Based on the research results, Germany, Spain, and Poland have common strengths contributing to infrastructure development: fair and transparent public procurement, a good insolvency protection system (Germany and Poland), a high credit rating (Germany), and financial stability (Poland). The general factors of the infrastructure facilities development are: in Germany – the development of infrastructure hubs is ensured by an effective regulatory framework and established rules for permitting, a quality legal system, a stable financial sector; in Spain – effective regulatory framework, effective tools of public administration; in Poland – the regulatory framework and infrastructure management systems.

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“…According to Keynesian theory, increased government spending would lead to increased private sector spending on both domestic and foreign goods, with the former lowering exports and the latter increasing imports. Furthermore, the government's spending exceeds its revenue, resulting in fiscal deficits (Keynes, 1936; Perez-Montiel & Manera, 2021). Contrary to the Keynesian view, the Barro (1974) research explains the necessary criteria for maintaining the Ricardian equivalence hypothesis (also known as ‘Barro-Ricardian Equivalence’ by (Buchanan, 1976) in his paper ‘Barro on the Ricardian Equivalence Theorem’) which explains that the two deficits are not connected because individuals are indifferent about the changes in the fiscal imbalance and how it is funded (tax versus debt) (Abel, 1991; Leachman & Francis, 2002; Miller & Russek, 1989; Normandin, 1999).…”

Section: Introductionmentioning

confidence: 99%

Impact of fiscal deficit and trade openness on current account deficit in India: new evidence on twin deficits hypothesis

Mehta

Mallikarjun

2023

ECON

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PurposeThis study aims to examine the impact of fiscal deficit, exchange rate and trade openness on current account deficit (CAD). The study tried to empirically investigate the ‘twin deficits hypothesis’ and ‘compensation hypothesis’ in the Indian context.Design/methodology/approachAutoregressive distributed lagARDL) bound test approach was used by taking annual time series data from 1978 to 2021. The estimates confirm a significant long-run and short-run relationship between dependent variables, i.e. CAD and independent variables such as the fiscal deficit, exchange rate and trade openness.FindingsThe results show that positive shocks of all explanatory variables significantly affect the CAD. CAD and fiscal deficit are significantly associated, as the coefficient of fiscal deficit is positive and significant. The study also found that exchange rate and trade openness significantly affect the CAD. The coefficients of exchange rate and trade openness are positive and significant. The findings show that an increase in CADs results from liberal trade policies that help domestic industries grow their trade and expansionary fiscal policy, leading to a higher fiscal deficit. The negative and significant error correction term suggests that short-run disequilibrium converges to long-run equilibrium at a speed of 19.2%. The findings validate the ‘twin deficits hypothesis’ and ‘compensation hypothesis’ in the Indian context.Practical implicationsIt can be inferred from the study that liberal policy to promote economic growth and trade openness should be designed and promoted judiciously. An excessive liberalised approach may impact other macroeconomic variables such as current account balances. Integrating the domestic market with global markets poses a big challenge for countries like India that aspire to penetrate global markets. Furthermore, the Indian policy makers should rigorously work and promote the policies such as Fiscal Responsibility and Budget Management (FRBM) as reduction in fiscal deficits, trade imbalances will also be reduced.Originality/valueThis study contributes to the existing literature on ‘twin deficit’ and trade openness by giving new evidence on the trilemma between designing sustainable fiscal policy by spending wisely without imperilling the country's global presence and CAD.

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Government public infrastructure investment and economic performance in Spain (1980–2016)

Cited by 9 publications

References 84 publications

Multiplier of consumer expenditures in the model of economic management of water resources of the Kyrgyz Republic

Multiplier of consumer expenditures in the model of economic management of water resources of the Kyrgyz Republic

The experience of EU countries towards the development of infrastructure and logistics hubs

Impact of fiscal deficit and trade openness on current account deficit in India: new evidence on twin deficits hypothesis

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