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

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dc.contributor.authorPushak, Taras
dc.contributor.authorTiongson, Erwin R.
dc.contributor.authorVaroudakis, Aristomene
dc.date.accessioned2012-06-07T17:22:52Z
dc.date.available2012-06-07T17:22:52Z
dc.date.issued2007-06
dc.description.abstractThis 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.identifierhttp://documents.worldbank.org/curated/en/2007/06/7726702/public-finance-governance-growth-transition-economies-empirical-evidence-1992-2004
dc.identifier.doi10.1596/1813-9450-4255
dc.identifier.urihttps://hdl.handle.net/10986/7415
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4255
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADVERSE EFFECTS
dc.subjectALLOCATION
dc.subjectALLOCATION OF RESOURCES
dc.subjectANNUAL GROWTH
dc.subjectANNUAL GROWTH RATE
dc.subjectBRIBES
dc.subjectBUDGET CONSTRAINT
dc.subjectBUREAUCRACY
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCAPITAL EXPENDITURE
dc.subjectCAPITAL STOCK
dc.subjectCAUSAL EFFECT
dc.subjectCONSENSUS
dc.subjectDATA ANALYSIS
dc.subjectDEPENDENT VARIABLE
dc.subjectDESCRIPTIVE STATISTICS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPING ECONOMIES
dc.subjectDIRECT INVESTMENT
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTLOOK
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL MODELS
dc.subjectEMPIRICAL STUDIES
dc.subjectEMPIRICAL WORK
dc.subjectEXPENDITURE LEVELS
dc.subjectEXPENDITURE POLICIES
dc.subjectEXPENDITURE PROGRAMS
dc.subjectFISCAL ADJUSTMENT
dc.subjectFISCAL ADJUSTMENTS
dc.subjectFISCAL BALANCE
dc.subjectFISCAL CONSOLIDATION
dc.subjectFISCAL DATA
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL IMBALANCES
dc.subjectFISCAL POLICY
dc.subjectFISCAL POSITION
dc.subjectFISCAL STABILITY
dc.subjectFIXED EFFECTS
dc.subjectFIXED EFFECTS ESTIMATOR
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectGOOD GOVERNANCE
dc.subjectGOVERNANCE INDICATOR
dc.subjectGOVERNANCE INDICATORS
dc.subjectGOVERNANCE QUALITY
dc.subjectGOVERNMENT CAPITAL
dc.subjectGOVERNMENT CONSUMPTION
dc.subjectGOVERNMENT EFFECTIVENESS
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT PROGRAMS
dc.subjectGOVERNMENT SIZE
dc.subjectGOVERNMENT SPENDING
dc.subjectGROWTH EQUATION
dc.subjectGROWTH LITERATURE
dc.subjectGROWTH MODEL
dc.subjectGROWTH PERFORMANCE
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectGROWTH REGRESSION
dc.subjectGROWTH REGRESSIONS
dc.subjectHEALTH CARE
dc.subjectHIGH TAXES
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME LEVELS
dc.subjectINDEPENDENT VARIABLES
dc.subjectINDIRECT APPROACH
dc.subjectINFLATION
dc.subjectINSTITUTIONAL QUALITY
dc.subjectINVESTMENT CLIMATE
dc.subjectLABOR FORCE
dc.subjectLONG TERM
dc.subjectLONG-RUN GROWTH
dc.subjectLONG-TERM GROWTH
dc.subjectLOW-INCOME COUNTRIES
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC STABILITY
dc.subjectMACROECONOMIC STABILIZATION
dc.subjectMARGINAL BENEFIT
dc.subjectMARGINAL BENEFIT OF EXPENDITURE
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL COST
dc.subjectMARGINAL COST OF TAXATION
dc.subjectMARGINAL EFFECT
dc.subjectMARKET ECONOMY
dc.subjectMARKET FAILURE
dc.subjectMEMBER STATES
dc.subjectNATIONAL AUTHORITIES
dc.subjectNEGATIVE IMPACT
dc.subjectNET INVESTMENT
dc.subjectPER CAPITA GROWTH
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY AGENDA
dc.subjectPOLICY REFORM
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY VARIABLES
dc.subjectPOLITICAL DYNAMICS
dc.subjectPOVERTY REDUCTION
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE SECTOR
dc.subjectPROGRAM DESIGN
dc.subjectPUBLIC CAPITAL
dc.subjectPUBLIC CONSUMPTION
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC INSTITUTIONS
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC INVESTMENTS
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR GOVERNANCE
dc.subjectPUBLIC SECTOR MANAGEMENT
dc.subjectPUBLIC SERVICE
dc.subjectPUBLIC SERVICE DELIVERY
dc.subjectPUBLIC SPENDING
dc.subjectREFORM PROCESS
dc.subjectREFORM PROGRAMS
dc.subjectRELATIVE IMPORTANCE
dc.subjectRESOURCE MANAGEMENT
dc.subjectSECTOR ACTIVITIES
dc.subjectSERVICE DELIVERY
dc.subjectSIGNIFICANT EFFECT
dc.subjectSIGNIFICANT EVIDENCE
dc.subjectSIZE OF GOVERNMENT
dc.subjectSOCIAL SECURITY
dc.subjectSOCIAL SPENDING
dc.subjectSTRUCTURAL BREAK
dc.subjectSTRUCTURAL REFORM
dc.subjectSTRUCTURAL REFORMS
dc.subjectTAX ADMINISTRATION
dc.subjectTAX BURDEN
dc.subjectTAX POLICY
dc.subjectTOTAL EXPENDITURE
dc.subjectTOTAL EXPENDITURES
dc.subjectTOTAL SAMPLE
dc.subjectTRANSITION ECONOMIES
dc.subjectUNCERTAINTY
dc.titlePublic Finance, Governance, and Growth in Transition Economies : Empirical Evidence from 1992-2004en
dspace.entity.typePublication
okr.crossref.titlePublic Finance, Governance, And Growth In Transition Economies : Empirical Evidence From 1992-2004
okr.date.doiregistration2025-04-10T09:13:30.796384Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/06/7726702/public-finance-governance-growth-transition-economies-empirical-evidence-1992-2004
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.globalpracticeGovernance
okr.guid889191468162554821
okr.identifier.doi10.1596/1813-9450-4255
okr.identifier.externaldocumentum000016406_20070615144714
okr.identifier.internaldocumentum7726702
okr.identifier.reportWPS4255
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/06/15/000016406_20070615144714/Rendered/PDF/wps4255.pdfen
okr.topicPoverty Reduction::Achieving Shared Growth
okr.topicPublic Sector Expenditure Analysis and Management
okr.topicMacroeconomics and Economic Growth::Macroeconomic Management
okr.topicGovernance::National Governance
okr.topicGovernance::Governance Indicators
okr.topicPublic Sector Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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