Privatizations in Developing Countries and the Government's Budget Constraint

Soft-Budget Constraint on Local Governments in China

Market Disciplining of the Developing Countries’ Sovereign Governments

This paper contributes to the literature on market disciplining of the sovereign governments in two ways: Firstly, it distinguishes the both sides of the market discipline hypothesis (MDH) by adopting three-stage least square estimation (3SLS) to incorporate the contemporaneous feedback effects between primary structural budget balances and country default risk premium. Secondly, by utilizing t...

R&d in Developing Countries: What Should Governments Do?*

I consider the implications of recent research for R&D policy in developing countries. Typical new growth models, which assume free entry and no strategic behaviour by R&D producers, are less appropriate for policy guidance than strategic oligopoly models. But the latter have ambiguous implications for targeted R&D subsidies, and caution against the anti-competitive effects of research joint ve...

Political Budget Cycles In Developed and Developing Countries ∗

This paper uses a large panel data set to examine the relation between elections and fiscal policy. We find evidence of political budget cycles in both developed and developing countries: government spending increases before elections while revenues fall, leading to a larger deficit in election years. We demonstrate that political budget cycles are much larger in developing countries than in de...

Approaches to Corruption in the Developing Countries

This article mainly seeks to provide a framework to help us reach a better understanding of the nature, causes and grounds of increasing administrative corruption in developing countries. In this regard, the author identifies six approaches to administrative corruption and surveys issues related to the rise of corruption within these context. These approaches include cost-benefit, relative depr...