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Public Expenditure in Latin America; Trends and Key Policy Issues

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Listed:
  • Benedict J. Clements
  • Christopher Faircloth
  • Marijn Verhoeven

Abstract

This paper examines trends in government spending in Latin America from the mid-1990s to 2006. It also examines key policy issues, including the cyclicality of spending, public investment, public employment, and social expenditures. It finds that primary expenditures have trended upward for the past ten years as a share of GDP, driven by increases in current spending, in particular for social expenditures. Fluctuations in real spending have continued to follow a procyclical pattern. The paper finds that there is substantial scope to improve the efficiency of public investment, public employment, and social spending.

Suggested Citation

  • Benedict J. Clements & Christopher Faircloth & Marijn Verhoeven, 2007. "Public Expenditure in Latin America; Trends and Key Policy Issues," IMF Working Papers 07/21, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:07/21
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    Cited by:

    1. repec:hpe:journl:y:2016:v:219:i:4:p:67-92 is not listed on IDEAS
    2. Harinder Kohli & Claudio Loser & Anil Sood (ed.), 2013. "Latin America 2040 — Breaking Away from Complacency: An Agenda for Resurgence — Second Edition," Books, Emerging Markets Forum, edition 2, number latam2040v2, August.
    3. Vratislav Izák, 2011. "The Welfare State and Economic Growth," Prague Economic Papers, University of Economics, Prague, vol. 2011(4), pages 291-308.
    4. Andrés Felipe SALAZAR CUELLAR, 2014. "The Efficiency of Education Expenditure in Latin America and Lessons for Colombia," ARCHIVOS DE ECONOMÍA 011209, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    5. Jean Grugel & Pía Riggirozzi, 2012. "Post-neoliberalism in Latin America: Rebuilding and Reclaiming the State after Crisis," Development and Change, International Institute of Social Studies, vol. 43(1), pages 1-21, January.
    6. Rolando Ossowski & Alberto Gonzáles-Castillo, 2012. "Manna from Heaven: The Impact of Nonrenewable Resource Revenues on Other Revenues of Resource Exporters in Latin America and the Caribbean," IDB Publications (Working Papers) 4045, Inter-American Development Bank.
    7. Kevin Gallagher & Roberto Porzecanski, 2009. "China and the Latin America Commodities Boom: A Critical Assessment," Working Papers wp192, Political Economy Research Institute, University of Massachusetts at Amherst.
    8. Vratislav Izák, 2011. "Vliv vládních výdajů a daní na ekonomický růst (empirická analýza)
      [Government Expenditures and Taxes Influence on the Economic Growth (Empirical Analysis)]
      ," Politická ekonomie, University of Economics, Prague, vol. 2011(2), pages 147-163.
    9. Magazzino, Cosimo, 2010. "Wagner's law and augmented Wagner's law in EU-27. A time-series analysis on stationarity, cointegration and causality," MPRA Paper 26668, University Library of Munich, Germany.
    10. Regis Bonelli, 2009. "Estado de uma Nação: Textos de Apoio - Estado e Economia: Estado e E Crescimento Econômico no Brasil," Discussion Papers 1393, Instituto de Pesquisa Econômica Aplicada - IPEA.
    11. Eduardo Wiesner, 2011. "Colombia: la percepción de justicia distributiva y la demanda política por estabilidad macroeconómica," DOCUMENTOS CEDE 008739, UNIVERSIDAD DE LOS ANDES-CEDE.
    12. Martín Ardanaz & Alejandro Izquierdo, 2017. "Current Expenditure Upswings in Good Times and Capital Expenditure Downswings in Bad Times?: New Evidence from Developing Countries," IDB Publications (Working Papers) 8558, Inter-American Development Bank.
    13. Magazzino, Cosimo, 2010. "Wagner's law and Italian disaggregated public spending: some empirical evidences," MPRA Paper 26662, University Library of Munich, Germany.

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    Keywords

    Latin America; Government expenditures; Fiscal policy; Public Expenditure; expenditures; expenditure; public spending; government spending; Macroeconomic - Aspects Of Public Finance; Macroeconomic Policy;

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