Publication:
Public Finance, Governance, and Growth in Transition Economies : Empirical Evidence from 1992-2004

dc.contributor.author Pushak, Taras
dc.contributor.author Tiongson, Erwin R.
dc.contributor.author Varoudakis, Aristomene
dc.date.accessioned 2012-06-07T17:22:52Z
dc.date.available 2012-06-07T17:22:52Z
dc.date.issued 2007-06
dc.description.abstract This paper revisits the early empirical literature on economic growth in transition economies, with particular focus on fiscal policy variables-fiscal balance and the size of government. The baseline model uses a parsimonious specification, drawn from Fischer and Sahay (2000), of economic growth as a function of initial conditions, stabilization, liberalization, and structural reform. The paper expands the data used in previous analyses by up to 10 years and finds unambiguous evidence that fiscal balance matters for growth, while confirming other previous findings on the correlates of economic growth in transition economies. In addition, the paper extends the baseline model and explores potential sources of nonlinearities in the relationship between growth and public finance. A key finding is that determinants of growth may vary in relative importance, depending on the underlying institutional quality. The evidence indicates that there could be higher growth payoffs from macroeconomic stability and public expenditure in countries characterized by relatively better public sector governance as measured by relevant indicators. In addition, the size of government matters for growth in a nonlinear manner: Beyond indicative thresholds of expenditure levels, public spending has a negative impact, while at levels below the threshold, there is no measurable impact on economic growth. en
dc.identifier http://documents.worldbank.org/curated/en/2007/06/7726702/public-finance-governance-growth-transition-economies-empirical-evidence-1992-2004
dc.identifier.uri http://hdl.handle.net/10986/7415
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 4255
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ACCOUNTING
dc.subject ADVERSE EFFECTS
dc.subject ALLOCATION
dc.subject ALLOCATION OF RESOURCES
dc.subject ANNUAL GROWTH
dc.subject ANNUAL GROWTH RATE
dc.subject BRIBES
dc.subject BUDGET CONSTRAINT
dc.subject BUREAUCRACY
dc.subject BUSINESS ENVIRONMENT
dc.subject CAPITAL EXPENDITURE
dc.subject CAPITAL STOCK
dc.subject CAUSAL EFFECT
dc.subject CONSENSUS
dc.subject DATA ANALYSIS
dc.subject DEPENDENT VARIABLE
dc.subject DESCRIPTIVE STATISTICS
dc.subject DEVELOPING COUNTRIES
dc.subject DEVELOPING COUNTRY
dc.subject DEVELOPING ECONOMIES
dc.subject DIRECT INVESTMENT
dc.subject ECONOMIC ACTIVITY
dc.subject ECONOMIC GROWTH
dc.subject ECONOMIC OUTLOOK
dc.subject EMPIRICAL EVIDENCE
dc.subject EMPIRICAL LITERATURE
dc.subject EMPIRICAL MODELS
dc.subject EMPIRICAL STUDIES
dc.subject EMPIRICAL WORK
dc.subject EXPENDITURE LEVELS
dc.subject EXPENDITURE POLICIES
dc.subject EXPENDITURE PROGRAMS
dc.subject FISCAL ADJUSTMENT
dc.subject FISCAL ADJUSTMENTS
dc.subject FISCAL BALANCE
dc.subject FISCAL CONSOLIDATION
dc.subject FISCAL DATA
dc.subject FISCAL DEFICITS
dc.subject FISCAL IMBALANCES
dc.subject FISCAL POLICY
dc.subject FISCAL POSITION
dc.subject FISCAL STABILITY
dc.subject FIXED EFFECTS
dc.subject FIXED EFFECTS ESTIMATOR
dc.subject FOREIGN DIRECT INVESTMENT
dc.subject GOOD GOVERNANCE
dc.subject GOVERNANCE INDICATOR
dc.subject GOVERNANCE INDICATORS
dc.subject GOVERNANCE QUALITY
dc.subject GOVERNMENT CAPITAL
dc.subject GOVERNMENT CONSUMPTION
dc.subject GOVERNMENT EFFECTIVENESS
dc.subject GOVERNMENT EXPENDITURE
dc.subject GOVERNMENT EXPENDITURES
dc.subject GOVERNMENT PROGRAMS
dc.subject GOVERNMENT SIZE
dc.subject GOVERNMENT SPENDING
dc.subject GROWTH EQUATION
dc.subject GROWTH LITERATURE
dc.subject GROWTH MODEL
dc.subject GROWTH PERFORMANCE
dc.subject GROWTH RATE
dc.subject GROWTH RATES
dc.subject GROWTH REGRESSION
dc.subject GROWTH REGRESSIONS
dc.subject HEALTH CARE
dc.subject HIGH TAXES
dc.subject HUMAN CAPITAL
dc.subject INCOME
dc.subject INCOME LEVELS
dc.subject INDEPENDENT VARIABLES
dc.subject INDIRECT APPROACH
dc.subject INFLATION
dc.subject INSTITUTIONAL QUALITY
dc.subject INVESTMENT CLIMATE
dc.subject LABOR FORCE
dc.subject LONG TERM
dc.subject LONG-RUN GROWTH
dc.subject LONG-TERM GROWTH
dc.subject LOW-INCOME COUNTRIES
dc.subject MACROECONOMIC INSTABILITY
dc.subject MACROECONOMIC STABILITY
dc.subject MACROECONOMIC STABILIZATION
dc.subject MARGINAL BENEFIT
dc.subject MARGINAL BENEFIT OF EXPENDITURE
dc.subject MARGINAL BENEFITS
dc.subject MARGINAL COST
dc.subject MARGINAL COST OF TAXATION
dc.subject MARGINAL EFFECT
dc.subject MARKET ECONOMY
dc.subject MARKET FAILURE
dc.subject MEMBER STATES
dc.subject NATIONAL AUTHORITIES
dc.subject NEGATIVE IMPACT
dc.subject NET INVESTMENT
dc.subject PER CAPITA GROWTH
dc.subject PER CAPITA INCOME
dc.subject POLICY AGENDA
dc.subject POLICY REFORM
dc.subject POLICY RESEARCH
dc.subject POLICY VARIABLES
dc.subject POLITICAL DYNAMICS
dc.subject POVERTY REDUCTION
dc.subject PRIVATE INVESTMENT
dc.subject PRIVATE SECTOR
dc.subject PROGRAM DESIGN
dc.subject PUBLIC CAPITAL
dc.subject PUBLIC CONSUMPTION
dc.subject PUBLIC EXPENDITURE
dc.subject PUBLIC EXPENDITURES
dc.subject PUBLIC FINANCE
dc.subject PUBLIC GOODS
dc.subject PUBLIC INSTITUTIONS
dc.subject PUBLIC INVESTMENT
dc.subject PUBLIC INVESTMENTS
dc.subject PUBLIC SECTOR
dc.subject PUBLIC SECTOR GOVERNANCE
dc.subject PUBLIC SECTOR MANAGEMENT
dc.subject PUBLIC SERVICE
dc.subject PUBLIC SERVICE DELIVERY
dc.subject PUBLIC SPENDING
dc.subject REFORM PROCESS
dc.subject REFORM PROGRAMS
dc.subject RELATIVE IMPORTANCE
dc.subject RESOURCE MANAGEMENT
dc.subject SECTOR ACTIVITIES
dc.subject SERVICE DELIVERY
dc.subject SIGNIFICANT EFFECT
dc.subject SIGNIFICANT EVIDENCE
dc.subject SIZE OF GOVERNMENT
dc.subject SOCIAL SECURITY
dc.subject SOCIAL SPENDING
dc.subject STRUCTURAL BREAK
dc.subject STRUCTURAL REFORM
dc.subject STRUCTURAL REFORMS
dc.subject TAX ADMINISTRATION
dc.subject TAX BURDEN
dc.subject TAX POLICY
dc.subject TOTAL EXPENDITURE
dc.subject TOTAL EXPENDITURES
dc.subject TOTAL SAMPLE
dc.subject TRANSITION ECONOMIES
dc.subject UNCERTAINTY
dc.title Public Finance, Governance, and Growth in Transition Economies : Empirical Evidence from 1992-2004 en
dspace.entity.type Publication
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2007/06/7726702/public-finance-governance-growth-transition-economies-empirical-evidence-1992-2004
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Poverty
okr.globalpractice Governance
okr.identifier.doi 10.1596/1813-9450-4255
okr.identifier.externaldocumentum 000016406_20070615144714
okr.identifier.internaldocumentum 7726702
okr.identifier.report WPS4255
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/06/15/000016406_20070615144714/Rendered/PDF/wps4255.pdf en
okr.topic Poverty Reduction :: Achieving Shared Growth
okr.topic Public Sector Expenditure Analysis and Management
okr.topic Macroeconomics and Economic Growth :: Macroeconomic Management
okr.topic Governance :: National Governance
okr.topic Governance :: Governance Indicators
okr.topic Public Sector Development
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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