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Expenditure reductions in developing countries revisited

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  • Norman L. Hicks

Abstract

During the 1980s, various factors have caused developing countries to reduce government expenditures in real terms. In many countries, rising debt service burdens have squeezed non‐debt service expenditures. This paper examines data for 24 developing countries, to see which kinds of expenditures were cut and which were protected. In general, it finds that capital expenditures were reduced more than current expenditures. Among the various sectors of government expenditure, the social sectors and defence were relatively protected, while the productive and infrastructure sectors bore a relatively larger burden of the adjustments.

Suggested Citation

  • Norman L. Hicks, 1991. "Expenditure reductions in developing countries revisited," Journal of International Development, John Wiley & Sons, Ltd., vol. 3(1), pages 29-37.
    • Handle: RePEc:wly:jintdv:v:3:y:1991:i:1:p:29-37
    DOI: 10.1002/jid.4010030103
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    Cited by:

    1. Matin, Kazi M., 1992. "Fiscal adjustment and the real exchange rate : the case of Bangladesh," Policy Research Working Paper Series 850, The World Bank.
    2. Bismillah & Shahnawaz Malik & Muhammad Ramzan Sheikh, 2022. "Trade Liberalization And Fiscal Stance In Selected Developing Countries: A Granger Causality Approach In Var Framework," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 134-159, June.
    3. Tony Killick, 1995. "Structural Adjustment and Poverty Alleviation: An Interpretative Survey," Development and Change, International Institute of Social Studies, vol. 26(2), pages 305-330, April.
    4. Calderon, Cesar & Serven, Luis, 2010. "Infrastructure in Latin America," Policy Research Working Paper Series 5317, The World Bank.
    5. Arzoo Mushtaq & Shahnawaz Malik & Muhammad Hanif Akhtar, 2022. "Nonlinear Taylor Rule And Inflation-Targeting In Pakistan: A Time Series Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 185-197, June.
    6. Manoj Atolia, 2010. "Public Investment, Tax Evasion, And The Welfare Effects Of A Tariff Reform," Contemporary Economic Policy, Western Economic Association International, vol. 28(2), pages 219-239, April.
    7. Jonakin, Jon & Stephens, Mark, 1999. "The impact of adjustment and stabilization policies on infrastructure spending in Central America," The North American Journal of Economics and Finance, Elsevier, vol. 10(1), pages 293-308.
    8. Haytem Ahmed Troug & Matt Murray, 2020. "The Asymmetric Effects of Fluctuations in Oil Prices on the Performance of the Libyan Economy: A VAR Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 282-296.
    9. Leonardo V. Vera, 2005. "Macroeconomic Adjustment Under An External And Fiscal Constraint: A Fix‐Price/Flex‐Price Approach," Metroeconomica, Wiley Blackwell, vol. 56(1), pages 126-156, February.
    10. Edward F. Buffie & Manoj Atolia, 2016. "Fiscal Adjustment and Inflation Targeting in Less Developed Countries," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(8), pages 1839-1875, December.

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