Fiscal Policy and Economic Development
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This paper offers possible explanations for three generally observed facts about fiscal policy and development: (F1) The relative size of government increases as an economy develops, (F2) The rise in government and taxation are associated with rising or constant economic growth rates, and (F3) Today's developing countries have larger government sectors than did today's developed countries at similar stages of development. The explanations for these facts are based on the structural transformation from traditional (mostly agricultural) to modern (industrial and post-industrial) production, rising public infrastructure investment, and less representative governments in many of today's developing economies.
Series:
Working Paper No. 2008/155
Subject:
Labor Labor productivity Labor share Public investment spending Structural transformation
Frequency:
Monthly
English
Publication Date:
June 1, 2008
ISBN/ISSN:
9781451870138/1018-5941
Stock No:
WPIEA2008155
Pages:
33
Please address any questions about this title to publications@imf.org