You are here

GLOBAL ECONOMIC CRISIS AND EFFECTIVENESS OF PUBLIC SPENDING: THE EU PRACTICE

Journal Name:

Publication Year:

DOI: 
http://dx.doi.org/10.15637/jlecon.131
Abstract (2. Language): 
The financial crisis of 2008 affected the whole world and it had a negative impact on economies. The effects of the crisis are still experienced in several nations. Especially high budget deficits, public debt and unemployment problems caused a heated debate on public spending that was increased to prevent economic recession in the post-crisis era. This study aims to discuss public expenditure efficiency in the wake of global financial crisis. The study utilized a database including the indicators of; Public Expenditures (as a dependent variable), Gross Domestic Product (GDP), Gross Domestic Product Growth Rate, Unemployment Rate, Public Debt, Fiscal Deficit, Human Development Index (HDI). HDI. We used panel regression analysis for 28 EU countries, and time series analysis for the the top 10 countries in terms of per capita income for the period of 2000-2015. :And this study argues that the high public spending did not affect the indicators used in this study in a positive way. In addition, to this, Norway, Luxemburg and Germany showed best performance in the post-crisis period.
139
158

JEL Codes:

REFERENCES

References: 

ADAM, C. S. & BEVAN, D.L.,2005, Fiscal Deficits and Growth in Developing Countries,
Journal of Public Economics, 89(4), 571 – 597.
AFONSO, A.,SCHUKNECHT, L.& TANZI, V., 2005, Public Sector Efficiency: An
International Comparison, PublicChoice, 23(1), 321–347.
AFONSO A., SCHUKNECHT, L. & TANZI, V., 2010, Public Sector Efficiency: Evidence
for New EU Member States and Emerging Markets, Applied Economics, 42(17),
2147–2164.
AFONSO, A.&FERNANDES, S., 2006, Local Government Spending Efficiency: The
Evidence for the Lisbon Region, Regional Studies, 40(1), 39–53.
AFONSO, A. & ST AUBYN, M., 2005,Non-Parametric Approaches to Education and Health
Efficiency in OECD Countries, Journal of Applied Economics, 8(2), 227–246.
AKTAN, C. C.,& ŞEN, H., 2001, Ekonomik Kriz: Nedenler ve Çözüm Önerileri, Yeni
Türkiye Ekonomik Kriz Özel Sayısı, 42 (II), 1225-1230
ANGELOPOULOS, K.,PHILIPPOPOULOS, A.&TSIONAS, E., 2008, Does Public Sector
Efficiency Matter? Revisiting the Relation Between Fiscal Size and Economic Growth
in a World Sample, Public Choice, 137, 245–278.
JAHANGIR, A.,CARAMAZZA, F.& SALGADO, R., 2000, Currency Crises: in Search of
Common Elements, IMF WorkingPaper, 2000, WP/00/67, 1-55.
BRAHMBHATT M.& CANUTO O. , (2012), Fiscal Policy for Growth and Development,
The World Bank, 91, 1-7.
BORGER, B. D., KERSTENS, K., MOESEN, W. & VANNESTE, J., 1994, Explaining
Differences in Productive Efficiency: an Application to Belgian Municipalities ,
Public Choice, 80: 3/4, 339-358.
BORGER, B. D. & KERSTENS, K.,1996,Cost Efficiency of Belgian Local Governments: A
Comparative Analysis Of FDH, DEA, and Econometric Approaches, Regional Science
and Urban Economics, 26, 145–70.
CAMERON, C. & PRAVIN, T., 2005, Microeconometrics Methods and Applications,
Cambridge UniversityPress.
CANUTO, O. & GIUGALE, M.,2010,The Day After Tomorrow : A Handbook On the Future
of Economic Policy in the Developing World,Washington, DC: World Bank.
CROTTY, J., 2008, Structural Causes of the Global Financial Crisis: A Critical
Assessment of the New Financial Architecture, WorkingPaper, No.2008-14.
EUROPEAN COMMISSION, 2012, European Economy The Quality of Public Expenditures
in the EU, Occasional Papers,
http://ec.europa.eu/economy_finance/publications/occasional_paper/2012/p...
en.pdf(Retrieved Date:12/04/2016).
EUROPEAN COMMISSION, 2014, Financial Crisis: Causes, Policy Responses, Future
Challenges, https://ec.europa.eu/research/social-sciences/pdf/policy_reviews/KI-NA-
26554_EN-C.pdf( Retrieved Date: 13.02.2016.
157
GUPTA, S. & VERHOEVEN, M., 2001, The Efficiency of Government Expenditure
Experiences From Africa, Journal of Policy Modeling, 23(4), 433 – 467.
GRIGOLI, F., 2012, Public Expenditure in the Slovak Republic: Composition and Technical
Efficiency, IMF Working Paper, No.173.
GREENE, W., 2010, Modelsfor Panel Data, Retrieved from:
http://people.stern.nyu.edu/wgreene/Lugano2013/Greene-Chapter-11.pdf (Retrieved
Date: 11.04.2016).
HAUNER, D. & KYOBE, A., 2010, Determinants of Government Efficiency, World
Development, 38 (11), 1527–1542.
IMF, 1998, World Economic Outlook, IMF: Washington, DC.
MARTINS, S.& JOSÉ VEIGA F.,2014, Government size, composition of public expenditure,
and economic development, International Tax and Public Finance, 21(4), August:
578-597.
MWEGA, F.M., 2010, Global Financial Crisis Discussion Series, Overseas Development
Institute, London.
GATAUWA, J. M., 2014, The 2008 Global Economic Crisis and PublicExpenditure: A
Critical Review of the Literature, Advances in Management &Applied Economics, 4
(2), 131-145.
HERRERA, S. & GAOBO, P., 2005, Efficiency of Public Spending in Developing Countries:
An Efficiency Frontier Approach, World Bank.
KARAKURT, B. 2010,Küresel Mali Krizi Önlemede Maliye Politikasının Rolü Ve
Türkiye’nin Krize Maliye Politikası Cevabı, Atatürk Üniversitesi İktisadi ve İdari
Bilimler Dergisi, 24(2), 167-195.
ST AUBYN, M., 2005, Evaluating Efficiency in the Portuguese Health and Education
Sectors, Economia, 26, 25-51.
TANZI, V. & SCHUKNECHT, L.,1997, Reconsidering the Fiscal Role of Government: The
International Perspective, The American Economic Review, 87(2), 164-168.
TANZI, V., 2005, The Economic Role of the State in the 21st Century, Cato Journal, 25(1),
617–38.
TANZI, V., 2011, Government Versus Markets: The Changing Economic Role of the State,
Cambridge University Press, New York.
TANZI, V., 2015, Fiscal and Monetary Policies During the Great Recession: A Critical
Evaluation, Comparative Economic Studies, 57 (2), 243-275.
TOYE, J.,2000, Fiscal Crisis and Fiscal Reform in Developing Countries, Cambridge Journal
of Economics, Vol. 24(1), 21-44.
KIMENYI, M. S. & MWABU, G., (2005), Policy Advice During a Crisis, Economics
WorkingPaper, No. 200541, 1-17.
FLORIN, O. & PETRISOR, M.B., 2011, Public Expenditure Policy in the Context of
Economic Crisis-Challenges and Implications,
http://anale.steconomiceuoradea.ro/volume/2011/n1/035.pdf( Retrieved Date:
10.02.2015].
158
PRAGUE GLOBAL POLICY INSTITUTE, 2012,The Financial CrisisFiveYears On.
Stimulus Austerity, http://glopolis.org/en/articles/financial-crisis-five-years-stimulusvs-
austerity-study/(Retrieved Date: 10.02.2015).
ŞENSES, F., ÖNİŞ, Z. & BAKIR, C., 2015, Ülke Deneyimleri Işığında Küresel Kriz ve Yeni
Ekonomik Düzen, İletişim Yayınları, 2. Baskı, İstanbul.
UNITED NATIONS, 2015, Trade and Development Report, United Nations Conference On
Trade and Development,Geneva.
OECD, 2015, Economic Policy Reforms: Going to Growth, Berlin.

Thank you for copying data from http://www.arastirmax.com