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https://www.um.edu.mt/library/oar/handle/123456789/61628
Title: | Government expenditure, debt and fiscal adjustment in small states |
Other Titles: | Small states and the pillars of economic resilience |
Authors: | Medina Cas, Stephanie Ota, Rui |
Keywords: | Macroeconomics -- Case studies Economics -- Legal aspects Environment -- Economic aspects Sustainable development States, Small -- Economic aspects |
Issue Date: | 2008 |
Publisher: | University of Malta. Islands and Small States Institute & The Commonwealth Secretariat |
Citation: | Medina Cas, S., & Ota, R. (2008). Government expenditure, debt and fiscal adjustment in small states. In L. Briguglio, G. Cordina, N Farrugia, & C. Vigilance (Eds.), Small states and the pillars of economic resilience (pp. 59-94). Msida: University of Malta. Islands and Small States Institute & London: The Commonwealth Secretariat |
Abstract: | Using a new fiscal dataset for small states, this paper analyses the link between country size, government size, debt, and economic performance. It finds that on average small states have larger governments and higher public debt. Although there are intrinsic factors that explain why governments are bigger in small states, those with smaller governments and lower public debt tend to grow faster and are less vulnerable and more economically resilient to external shocks. Large fiscal adjustments, primarily through expenditure restraint, can underpin growth, especially when embedded in an economic reform programme. Since better governance is associated with lower debt, fiscal adjustment should be supported by governance improvements. |
URI: | https://www.um.edu.mt/library/oar/handle/123456789/61628 |
ISBN: | 978-99909-49-24-7 |
Appears in Collections: | Small states and the pillars of economic resilience |
Files in This Item:
File | Description | Size | Format | |
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Government_expenditure_debt_and_fiscal_adjustment_in_small_states.pdf | 699.59 kB | Adobe PDF | View/Open |
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