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Study on quality of public finances in support of growth in the Mediterranean partner countries of the EU

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    Abstract

    Based on the conceptual framework developed by the European Commission for linking the quality of public finances and economic growth, this study examines empirically the key channels through which fiscal policy impacts economic growth in the Mediterranean partner countries of the EU. The results confirm that the function of specific disaggregated fiscal parameters like debt financing, governance, efficiency of spending, mixture of taxes can have a significant impact on growth.

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    File URL: http://ec.europa.eu/economy_finance/publications/publication16476_en.pdf
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    Bibliographic Info

    Paper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 394.

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    Length: 71 pages
    Date of creation: Dec 2009
    Date of revision:
    Handle: RePEc:euf:ecopap:0394

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    Keywords: Quality of public finances; fiscal policy; growth; public sector governance; Mediterranean partner countries. Study on Qualit;

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    1. Peter S. Heller, 2005. "Understanding Fiscal Space," IMF Policy Discussion Papers 05/4, International Monetary Fund.
    2. Rajkumar, Andrew Sunil & Swaroop, Vinaya, 2008. "Public spending and outcomes: Does governance matter?," Journal of Development Economics, Elsevier, vol. 86(1), pages 96-111, April.
    3. Semmler, Willi & Greiner, Alfred & Diallo, Bobo & Rezai, Armon & Rajaram, Anand, 2007. "Fiscal policy, public expenditure composition, and growth theory and empirics," Policy Research Working Paper Series 4405, The World Bank.
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