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Public deficit, public debt, corruption and economic freedom: some empirical evidence from Romania

Author

Listed:
  • Nicholas Apergis

    (Department of Banking and Financial Management, University of Piraeus, Piraeus, Greece)

  • Dan Constantin Dănuleţiu

    (Department of Economics and Business Administration “1 Decembrie 1918” University of Alba Iulia, Alba Iulia, Romania)

Abstract

The institutional framework integrates factors that have important effects on fiscal issues, especially, in a transitional economy. This paper uses data for Romania spanning the period 2000-2011 to investigate the re lationship between the legal structure, the public deficit and the public debt. The results confirm the importance of the group of institutional variables. The presence of bi-directional causality between the public deficit and all institutional variables is validated. The results are extremely important for regulators and policy makers, since the different sources of inefficiency related to the institutional variables require similarly multi-faceted solutions that take into account local circumstances and cultural contexts.

Suggested Citation

  • Nicholas Apergis & Dan Constantin Dănuleţiu, 2013. "Public deficit, public debt, corruption and economic freedom: some empirical evidence from Romania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(48), pages 3-22, June.
    • Handle: RePEc:rej:journl:v:16:y:2013:i:47:p:3-22
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    References listed on IDEAS

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    More about this item

    Keywords

    public deficit; corruption; economic freedom; causality; Romania;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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