IDEAS home Printed from https://ideas.repec.org/a/ids/ijtrgm/v12y2019i3-4p250-259.html
   My bibliography  Save this article

Social capital and the cyclicality of government expenditure

Author

Listed:
  • Roman Dennis Bausch

Abstract

Fiscal policy in developing countries follows predominantly the business cycle. By aggravating economic contractions, procyclicality has adverse effects on the prospects for countries and their international trading partners. Recent work identified as a leading cause for procyclicality institutional shortcomings. This paper sets out to examine whether fiscal cyclicality is determined by social capital, which in many ways shapes and constrains the institutional environment. The study confirms a causal and robust negative relationship between social capital and procyclicality, whereby the results indicate that this relationship partially runs through the adoption of fiscal rules and the extent of corruption.

Suggested Citation

  • Roman Dennis Bausch, 2019. "Social capital and the cyclicality of government expenditure," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 12(3/4), pages 250-259.
    • Handle: RePEc:ids:ijtrgm:v:12:y:2019:i:3/4:p:250-259
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=101545
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijtrgm:v:12:y:2019:i:3/4:p:250-259. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=130 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.