Why are corrupt countries less successful in consolidating their budgets?

Arın, K. Peren; Chmelarova, Viera; Feess, Eberhard; Wohlschlegel, Ansgar

doi:10.1016/j.jpubeco.2011.01.007

Cited by 29 publications

(12 citation statements)

References 27 publications

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“…On the other hand, cuts in public wages were the key ingredient of fiscal consolidations in which persistent reductions in primary budget deficits were achieved. Arin et al (2015) start with dataset used by Arin et al (2011) and re-estimate the determinants of successful fiscal consolidations, using semi-parametric methods. Their results show that the more governments rely on cutting expenditures, the more likely that they succeed in their consolidation attempts.…”

Section: Review Of the Empirical Literaturementioning

confidence: 99%

Does fiscal consolidation promote economic growth and employment? Evidence from the PIIGGS countries

Arestis

Kaya

Şen

2018

European Journal of Economics and Economic Policies: Intervention

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Using annual data over the period 1980–2014, this paper attempts to provide an answer to the question of whether fiscal consolidation promotes growth and employment in the context of the PIIGGS countries (Portugal, Ireland, Italy, Greece, Great Britain, and Spain) by using the Bootstrap Granger causality analysis proposed by Kónya (2006), which allows testing for causality on each individual country separately, and by accounting for dependence across countries. Our findings indicate that in no country considered does fiscal consolidation promote growth. However, fiscal consolidation negatively affects employment in Portugal and Italy, whereas it positively influences employment in Great Britain. Based on our findings, we may suggest that the effects of fiscal consolidation on employment produce mixed results, varying from country to country.

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Section: Review Of the Empirical Literaturementioning

confidence: 99%

Does fiscal consolidation promote economic growth and employment? Evidence from the PIIGGS countries

Arestis

Kaya

Şen

2018

European Journal of Economics and Economic Policies: Intervention

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“…This definition is also used by e.g. Alesina and Perotti,(1995), European Commission, (2007), Arin et al, (2012), Barrios et al, (2010). this happens in a period of consecutive years of sizeable improvements in the fiscal balance. Such fiscal consolidation episodes are closer to what OECD countries experience after the recent global financial crisis, when fiscal adjustments are likely to be multi-year processes.…”

Section: Data Descriptionmentioning

confidence: 99%

“…This approach is suggested by the original paper of Alesina and Perotti (1997) and is also followed in subsequent studies, e.g. Arin et al (2012). Other studies use slightly different criteria.…”

Section: Successmentioning

confidence: 99%

“…Other papers study the role of fiscal rules (e.g. Guichard et al., ), the type of government (Alesina and Perotti, ), corruption (Arin et al., ) or systemic financial crises (Barrios et al., ).…”

Section: Introductionmentioning

confidence: 99%

“…This definition is also used by e.g. Alesina and Perotti,(), European Commission, (), Arin et al., (), Barrios et al., ().…”

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confidence: 99%

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Does Fairness Matter for the Success of Fiscal Consolidation?

Καπλάνογλου

Rapanos

Bardakas³

2015

Kyklos

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Summary Does it matter for fiscal consolidation programs to be fair in order to be successful? This question has never been empirically addressed despite its profound importance especially since many developed countries have embarked on fiscal consolidation programs, which in many cases have led to sizeable increases in unemployment and poverty, and are met with public dissatisfaction. Using a data set for 29 OECD countries over the period 1971–2009, we argue that fairness matters, namely that improving the targeting of social transfers and their effectiveness in terms of poverty alleviation, higher public expenditure on training and active labor market programs and programs like social housing directed to the poor, even decreasing the VAT rate on necessities, improve the success probabilities of consolidation attempts. Introducing such concerns sheds new light on the prevailing view that the successful fiscal adjustments are those that rely on spending‐cuts rather than on tax increases. The results of this paper provide empirical evidence that ameliorating the effects of adjustment, by supporting the weaker parts of society, is crucial for the success of fiscal consolidations and argues that “fair fiscal adjustments” may provide the double dividend of enhancing the probability of success of the adjustment and of promoting social cohesion.

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New Public Management, Corruption, Information Computer Technology, and Budget Deficit: Fiji, Jamaica, and Mauritius

Naidu

2022

Global Encyclopedia of Public Administration, Public Policy, and Governance

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Why are corrupt countries less successful in consolidating their budgets?

Cited by 29 publications

References 27 publications

Does fiscal consolidation promote economic growth and employment? Evidence from the PIIGGS countries

Does fiscal consolidation promote economic growth and employment? Evidence from the PIIGGS countries

Does Fairness Matter for the Success of Fiscal Consolidation?

New Public Management, Corruption, Information Computer Technology, and Budget Deficit: Fiji, Jamaica, and Mauritius

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