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Analysis of the incidence of public spending on employment and imports in Argentina during 2005-2015

Author

Listed:
  • Alcides Bazza

    (National University of the Litoral & National Council for Scientific and Technical Research (UNL – CONICET))

  • Gabriel Brondino

    (National University of the Litoral & National Council for Scientific and Technical Research (UNL – CONICET))

  • Hernan Roitbarg

    (National University of the Litoral & National Council for Scientific and Technical Research (UNL – CONICET))

Abstract

The paper analyzes the incidence of current public spending on employment and imports in Argentina during 2005-2015 based on an input-output analysis. In this period, employment and intermediate imports induced by Argentine public spending increased by a much higher magnitude than inother countries, converging to similar relative values to European countries with higher incomes. From a structural decomposition analysis, we find that the most important source of the increase in employment and intermediate imports was the level of government spending. However, the period coincides with major changes in the distribution of spending by purpose and the effect of these changes was to reduce the level of induced employment and increase the level of induced intermediate imports. An analysis of the cost in foreign currency per job confirms that this effect is directly associated with the increase in the importance of spending on “Economic Services”.

Suggested Citation

  • Alcides Bazza & Gabriel Brondino & Hernan Roitbarg, 2022. "Analysis of the incidence of public spending on employment and imports in Argentina during 2005-2015," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(80), pages 53-75, November.
    • Handle: RePEc:bcr:ensayo:v:1:y:2022:i:80:p:53-75
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    References listed on IDEAS

    as
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    6. Aldo Barba & Massimo Pivetti, 2009. "Rising household debt: Its causes and macroeconomic implications--a long-period analysis," Cambridge Journal of Economics, Oxford University Press, vol. 33(1), pages 113-137, January.
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    More about this item

    Keywords

    Argentina; employment; input-output matrix; imports; public spending;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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