scholarly journals The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies: Evidence from Latin America

2018 ◽  
Author(s):  
Yan Carriere-Swallow ◽  
Antonio C. David ◽  
Daniel Leigh
Keyword(s):  
Latin America ◽  
Emerging Economies ◽  
Fiscal Consolidation ◽  
Macroeconomic Effects

scholarly journals Fiscal consolidation in developed and emerging economies

Nova Economia ◽  
2015 ◽  
Vol 25 (spe) ◽  
pp. 835-861
Author(s):  
Paulo André Camuri ◽  
Frederico G. Jayme Jr. ◽  
Ana Maria Hermeto
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Standard Errors ◽  
Economic Policies ◽  
Fiscal Consolidation ◽  
Transition Path ◽  
Causality Test ◽  
Developed Economies ◽  
Fiscal Space ◽  
Main Determinants

Abstract: The debate regarding fiscal policy has given support to the formulation of an economic policy based on control of indebtedness and in persecution of public savings, acting as important support for the economic growth. This paper presents evidence that counter acts this theory of expansionary austerity. A set of panel data regressions is estimated - through Driscoll & Kraay’s, FGLS, panel corrected standard errors, and SUR estimators and the causality test approach proposed by Kónya (2006) - in search of robust inference related to the main determinants that encompasses the fiscal framework. Our conclusion is that the empirical evidence - using a set of 20 developed economies and other of 24 emerging economies - suggests that identical economic policies for different countries might conduce to results that are opposite to the desired outcome. Notwithstanding the adverse effects associated to explosive debt path, the search for “fiscal space” should be determined essentially by a pro-growth agenda. This is particularly important for the emerging economies facing the transition path challenges.

Public infrastructure investment and fiscal sustainability in Latin America: incompatible goals?

2014 ◽  
Vol 41 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Luis Carranza ◽  
Christian Daude ◽  
Angel Melguizo
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Latin American ◽  
Public Investment ◽  
Fiscal Rules ◽  
Infrastructure Investment ◽  
Fiscal Consolidation ◽  
Public Infrastructure ◽  
Content Type ◽  
Fiscal Space

Purpose – This paper aims to understand the relationship in developing countries between fiscal consolidation and public investment – a flexible part of the budget that is easier to cut during consolidation effort, but with potentially negative growth effects. Analyzing in detail the case of Peru, the paper explores alternative fiscal rules and frameworks that might help create fiscal space for infrastructure investment. Design/methodology/approach – The paper analyses trends in public and total infrastructure investment in six large Latin American economies, in the light of fiscal developments since the early 1980s. In particular, the paper explores the association between fiscal consolidations (improvements in the structural fiscal balance) and public infrastructure investment rates. In the second part, the paper analyzes recent changes in the fiscal framework of Peru and shows how they were conductive in creating additional fiscal space. Findings – The authors argue that post-crisis fiscal frameworks, notably fiscal rules that are increasingly popular in the region, should not only consolidate the recent progress towards debt sustainability, but also create the fiscal space to close these infrastructure gaps. These points are illustrated in a detailed account of recent developments in the fiscal framework and public investment in the Peruvian case. Originality/value – The paper contributes new evidence to the literature on fiscal consolidation and the composition of government expenditures. While the literature based on evidence from the 1990s has argued that fiscal consolidation plans in Latin America have almost always led to a significant reduction in public infrastructure investment, the paper finds less clear cut evidence when extending the analysis backwards (1980s) and forwards (2000s). The example of the case of Peru is used to explore fiscal institutions and rules that might be useful for other developing countries that face important infrastructure gaps.

Establishment of an Administered Account for Interim Holdings of Voluntary Contributions for Fund Activities and Establishment of a Framework Administered Account for Selected Fund Activities - Subaccount for the Administration of Selected Smaller-Scale Capacity Building Activities

Policy Papers ◽  
2010 ◽  
Vol 2010 (87) ◽  
Author(s):  
Keyword(s):  
Capacity Building ◽  
Emerging Economies ◽  
Government Debt ◽  
Fiscal Consolidation ◽  
Current Trends ◽  
Percentage Points ◽  
Age Related ◽  
Starting Point ◽  
General Government ◽  
Building Activities

This paper identifies policy tools to support fiscal consolidation in the years ahead. Its starting point is the analysis in the recent Board papers describing strategies for fiscal consolidation (IMF, 2010a, 2010b), which showed that on current trends, general government debt in advanced countries would rise 36 percentage points of GDP during 2007–14, and that age-related spending (health and pension) would rise rapidly later, further adding to fiscal pressures. Trends are more favorable in emerging economies, but adjustments are needed there too.

scholarly journals Unveiling barriers to sustainable public procurement in emerging economies: Evidence from a leading sustainable supply chain initiative in Latin America

2018 ◽  
Vol 134 ◽  
pp. 70-79 ◽  
Author(s):  
Diego Delmonico ◽  
Charbel Jose Chiappetta Jabbour ◽  
Susana Carla Farias Pereira ◽  
Ana Beatriz Lopes de Sousa Jabbour ◽  
Douglas William Scott Renwick ◽  
...  
Keyword(s):  
Latin America ◽  
Supply Chain ◽  
Emerging Economies ◽  
Public Procurement ◽  
Sustainable Supply Chain

Exploring Emerging Latin America: Implications for German Companies Using Spain as a Springboard Country

2017 ◽  
Vol 18 (4) ◽  
pp. 993-1009 ◽  
Author(s):  
Rohit Subhash Prabhudesai ◽  
Ch V V S N V Prasad ◽  
Boon Chuan Ang
Keyword(s):  
Latin America ◽  
Latin American ◽  
Emerging Economies ◽  
The European Union ◽  
Cultural Issues ◽  
Cultural Experience ◽  
Qualitative And Quantitative ◽  
Cultural Bridge ◽  
Latin American Countries ◽  
Direct Market

This article seeks to determine the means by which European companies can make use of Latin European countries as a springboard to emerging markets in Latin America. For the sake of this study, Germany and Spain were used as the European and springboard countries, respectively. Cultural issues experienced by German companies in Asia have made it imperative for them to explore alternative emerging economies, such as Latin American countries. However, Latin America represents an equally risky opportunity through direct market entry owing to the cultural gap across the two regions. Given the interactions between members of the European Union and the cultural similarities between Spain and Latin America, the hypothesis of former being a cultural bridge was tested. The qualitative and quantitative cultural parameters across Germany, Spain and Latin America were compared and results showed that Spanish cultural experience can bridge the German–Latin American cultural gap.

scholarly journals Relations between China and Latin America: Inter-regionalism beyond the Triad

2015 ◽  
Vol 37 (3) ◽  
pp. 379-402
Author(s):  
Bernadett Lehoczki
Keyword(s):  
Latin America ◽  
Latin American ◽  
Global Governance ◽  
Emerging Economies ◽  
Regional Cooperation ◽  
Developing Regions ◽  
The World

Inter-regionalism refers to regular forms of cooperation between regions or actors from different regions and is a result of the parallel phenomena of globalization and regionalism. Inter-regional links are rapidly developing all around the world and form a new level of global governance. Though originally inter-regionalism typically connected the actors of the so-called Triad, today emerging economies and developing regions are more active and visible participants of inter-regional cooperation. The article examines the perspectives and limitations of inter-regional relations between China and Latin America as a new dimension of deepening Sino—Latin American relations.

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