The effectiveness of fiscal policy contributions from institutions and external debts (2)
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: The effectiveness of fiscal policy contributions from institutions and external debts (2)
The effectiveness of fiscal policy contributions from institutions and external debts (2)
Nguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)anhnguyen@ueh.edu.vnAbstractThe effectiveness of fiscal policy is an interesting field in literature of macroeconomics. In this paper, we use panel data from 2002 to 2014 from 20 emerging markets to investigate the effects of fiscal policy on economic growth under contributions from the differences The effectiveness of fiscal policy contributions from institutions and external debts (2)in institutions and external debt levels. By using GMM estimators for unbalanced panel data, our results show positive growth effects of fiscal policyThe effectiveness of fiscal policy contributions from institutions and external debts (2)
across emerging markets in the examined periods. Notably, the improvement in institutions promotes higher crowding-in effects of fiscal policy. In adNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)iscal policy on economic growth as positive effects in low indebted level and negative effect in high indebted level may explain the mechanism of this non-linear relationship. The results have significant contributions to the literature and useful implications for authorizers in promoting sustainabi The effectiveness of fiscal policy contributions from institutions and external debts (2)lity of the economy. The authorizers are strongly recommended to focus on improving the institutional quality that not only boosts the effectiveness oThe effectiveness of fiscal policy contributions from institutions and external debts (2)
f fiscal policy in general, but also solves the dilemma of high indebted countries when the fiscal policy loses the effectiveness.Keyword: external deNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)ims at sustainable development for the economy. So, fiscal policy and its impacts on the economic growth tend to be at the center of macroeconomic and political debates. The field of the effectiveness of fiscal policy has re-highlighted in light of the 2008 global financial crisis with the new conte The effectiveness of fiscal policy contributions from institutions and external debts (2)mporary drivers such as external debt (Ruscáková & Semancikova, 2016). Due to the complexity of the fiscal process by which it is not fully captured,The effectiveness of fiscal policy contributions from institutions and external debts (2)
that why different theories provide different answers regarding macroeconomic effects of fiscal policy and arguments about the suitability and real efNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)n in the literature of the fiscal policy's effectiveness is that whether fiscal policy presents crowding-out and/or crowding-in effects in a country and what its drivers. In fact, many researchers try to find evidences with the parallel existence of both and mixed conclusions (see Ahmed and Miller ( The effectiveness of fiscal policy contributions from institutions and external debts (2)2000), Heutel (2014), $en and Kaya (2014)).The studies of the effectiveness of fiscal policy have developed and conducted in long history through manyThe effectiveness of fiscal policy contributions from institutions and external debts (2)
economic growth models. Many studies use versions of the Solow (1956) model to study the dynamic effects of taxation on economic growth, while other Nguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)nomic growth follow two different regimes including crowding-out effects and crowding-in effects. The neo- classical theory states that government expenditure crowds out private investment then has negative impacts on economic growth. While, Keynesian view, in contrast, states that government expend The effectiveness of fiscal policy contributions from institutions and external debts (2)iture stimulates private investment in the case of un-fully employment, which then has positive impacts on economic growth, especially in developing cThe effectiveness of fiscal policy contributions from institutions and external debts (2)
ountries (Ahmed & Miller, 2000).Moreover, the effects of fiscal policy on economic growth is driven by many factors such as the employment in the econNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)laki and Tagkalakis (2016), Hemming, Kell, and Mahfouz (2002)). In empirical literature about the determinants of fiscal policy's effectiveness, there are, in fact, some studies that consider the role of institutional framework such as corruption situation, economic freedom, democracy (see Baldacci, The effectiveness of fiscal policy contributions from institutions and external debts (2) Hillman, and Kojo (2004), Martinez-Vazquez, Boex, and Arze del Granado (2007), Nelson and Singh (1998)).Meanwhile, the burdens of external debt on thThe effectiveness of fiscal policy contributions from institutions and external debts (2)
e sustainability of fiscal policy are also concerned. For instance, Amato and Tronzano (2000) find the evidence that the debt maturity and the share oNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)cted by central government debt, total factor productivity growth, and debt-services in the short-run. They also recommend that Indian government should followthe objective of inter-generational equity in fiscal management over the long term to stabilize debt level.Which means that the external debt The effectiveness of fiscal policy contributions from institutions and external debts (2) may influence the effectiveness of fiscal policy. Recent study, Dogan and Bilgili (2014) find that external borrowing has negative impact on growth bThe effectiveness of fiscal policy contributions from institutions and external debts (2)
oth in regime at zero and regime at one, but the public debt has higher negative effects on economic growth and development, thus they conclude a non-Nguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2) Smith (1937), Bailey (1971), Buiter (1977), and Arestis (1979), and many recent studies try to investigate the impacts of both government expenditures on private investment and especially economic growth. However, the debate with regard to the effectiveness of fiscal policy is still ongoing (Bouake The effectiveness of fiscal policy contributions from institutions and external debts (2)z et al., 2014; Heutel, 2014; Kameda, 2014a; $en & Kaya, 2014). Precisely, the literature of fiscal policy is lacking of the studies about the effectiThe effectiveness of fiscal policy contributions from institutions and external debts (2)
veness of fiscal policy under the contributions from the institutions and external debts in a comprehensive work. Therefore, this study is conducted uNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)ionships with the changes in the institutions and the burdens of external debt in the context of 20 emerging markets including Argentina, Bangladesh, Brazil, Bulgaria, China, Colombia, Egypt, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Romania, Russia, South Africa, Thailand, Tu The effectiveness of fiscal policy contributions from institutions and external debts (2)rkey, and Vietnam.In this paper, we achieve our objectives by implementing following strategy. We firstly examine the impacts of fiscal policy on econThe effectiveness of fiscal policy contributions from institutions and external debts (2)
omic growth through the modified model of endogenous growth theory by incorporating government expenditure and controlling other common drivers of ecoNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2) including government effectiveness, regulatory quality, and control of corruption are incorporated, respectively, to test the impacts of institutions on economic growth. Next, we use the interaction terms between government expenditure and institutions to examine the effectiveness of fiscal policy The effectiveness of fiscal policy contributions from institutions and external debts (2)under the associations of institutional framework. We then estimate the growth model with the explanatory variables including both external debt levelThe effectiveness of fiscal policy contributions from institutions and external debts (2)
to GNI and its square to examine the nonlinear relationship between external debt and economic growth. After that, we divide our data into two sub-saNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2) per capita growth rate in replacing GDP growth rate to check robustness of results.By doing this strategy, we believe that this study has significant contributions to both theory and practice. Firstly, this study has contribution to the literature of fiscal policy effectiveness and fiscal indebtedn The effectiveness of fiscal policy contributions from institutions and external debts (2)ess by adding the effects of government expenditures under the external debt level and the associations with institutional quality. The results find sThe effectiveness of fiscal policy contributions from institutions and external debts (2)
ignificant evidences that the institutions enhance the effectiveness of fiscal policy. Notable, the external debt level presents the non-linear relatiNguyen Phuc CanhThe effectiveness of fiscal policy: Contributions from institutions and external debtsNGUYEN PHUC CANHUniversity of Economics HCMC -ca The effectiveness of fiscal policy contributions from institutions and external debts (2)ow indebted level and crowding-out effects in high indebted one. Secondly, this study has significant implications for the authorizers in implementing the long-term sustainable fiscal policy in line with borrowing policy and the solutions for the high indebted countries that face to the dilemma of i The effectiveness of fiscal policy contributions from institutions and external debts (2)neffective fiscal policy.This paper is structured as following. Section 1 states our motivations of this study. Section 2 briefly presents literatureThe effectiveness of fiscal policy contributions from institutions and external debts (2)
reviews and then our arguments on the effectiveness of fiscal policy under the contributions from institutions and external debt. Methodology and dataGọi ngay
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