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The role of institutional quality on fiscal consolidation in developing countries


Ng, Chee Hung and Law, Siong Hook (2012) The role of institutional quality on fiscal consolidation in developing countries. In: National Research & Innovation Conference for Graduate Students in Social Sciences (GS-NRIC 2012), 7-9 Dec. 2012, Mahkota Hotel, Melaka. (pp. 400-413).


This paper examines the effect of institutional quality on the effort of fiscal consolidation in developing countries during 1980-2008. The panel generalized method of moments (GMM) results indicate that better quality of institutions tend to reduce the deficit budget accounts and the debt-to-GDP ratios in developing countries. The stronger institutions allow these countries to involve in more fiscal expansionary programs as well as to achieve a higher sustainable level of debts.

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Additional Metadata

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Economics and Management
Publisher: Faculty of Economics and Management, Universiti Putra Malaysia
Keywords: Subprime crisis; Country bankruptcy; Fiscal consolidation; Institutional quality; System GMM
Depositing User: Nabilah Mustapa
Date Deposited: 03 Apr 2017 07:44
Last Modified: 03 Apr 2017 07:44
URI: http://psasir.upm.edu.my/id/eprint/51269
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