SavedAdd your journal

Journals / Journal of Yasar University / 2022 / Cilt: 17 - Sayı: 66

Budget Deficit and Quality of Governance Nexus: A Bootstrap Panel Granger Causality Analysis for BRICS-T

Mehmet DAĞ
Nazlı KEYİFLİ
Pages
538–557
Publication Date
2022-10-19
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

In China and India, however, no causal relationship was observed between the budget deficit and the quality of management (democratic quality and technical quality).

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study aims to analyze empirically the nexus among budget deficits and governance quality (democratic quality and technical quality) in the context of special group of developing countries BRICS-T countries Brazil, India, China, South Africa, Russia and Turkey) fort he period 1996-2020.
📊
Key Findings & Data:In the study, Kónya's (2006) Bootstrap panel Granger causality analysis, which is the second generation panel causality test, was used as a method.
💡
Conclusion & Impact:In China and India, however, no causal relationship was observed between the budget deficit and the quality of management (democratic quality and technical quality).
🔬Design:Research Article
📍Scope:2020 Verileri
⚙️Variables:Domain Parameters

Abstract

This study aims to analyze empirically the nexus among budget deficits and governance quality (democratic quality and technical quality) in the context of special group of developing countries BRICS-T countries Brazil, India, China, South Africa, Russia and Turkey) fort he period 1996-2020. In the study, Kónya's (2006) Bootstrap panel Granger causality analysis, which is the second generation panel causality test, was used as a method. Findings obtained by using Bootstrap panel Granger causality analysis;A one-way causality relationship from budget deficit to democratic quality for Russia and Turkey; It reveals a one-way causality relationship from democratic quality to budget deficit for Brazil. On the other hand, one-way causality from budget deficit to technical quality for Brazil and South Africa; one-way causality relationship from technical quality to budget deficit for Russia; for Turkey, on the other hand, a bidirectional causality relationship has been determined. In China and India, however, no causal relationship was observed between the budget deficit and the quality of management (democratic quality and technical quality).

🔖

Cite This Article

DAĞ, M., KEYİFLİ, N. (2022). Budget Deficit and Quality of Governance Nexus: A Bootstrap Panel Granger Causality Analysis for BRICS-T. Journal of Yasar University, Cilt: 17 - Sayı: 66, 538–557. https://ajindex.com/articles/568808

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (13)

  1. Alesina, A., Drazen, A. (1991). Why Are Stabilizations Delayed?, National Bureau of Economic Research, NBER Working Paper Series, Working Paper, No. 3053. Alesina, A., Perotti, R. (1995). The Political Economy of Budget Deficits. IMF Staff Papers, 42(1), 1-31.
  2. Alesina, A., Rodrik, D.(1994). Distributive Politics and Economic Growth, The Quarterly Journal of Economics, 109(2), 465-490.
  3. Alesina, A., Roubini, N., Cohen, G. (1997). Political Cycles and the Macroeconomy, MIT Press,
  4. Cambridge, MA. Alesina, A., Tabellini, G. (1987). A Positive Theory of Fiscal Deficits and Government Debt in a Democracy, NBER, Working Paper, No. 2308. Annett, A. (2002).
  5. Politics, Government Size and Fiscal Adjustment in Industrial Countries. IMF Working Paper, No. 02/162. Arif, A., Hussain, M. (2018). The Role of Governance and Political Institutions for Budget Deficit for Low and High Income Countries: A Panel Data Analysis, European Research Studies Journal, Special Issue 3, 357- 366. Barişik, S., Barış, A. (2017). Impact of Governance on Budget Deficit in Developing Countries, Theoretical and Applied Economics, 2(611), 111-130.
  6. Bevir, M. (2009).
  7. Key Concepts in Governance, Sega Published Ltd. London. Caluser, M., Salagean, M. (2007). Good Governance in Multiethnic Communities Conditions, Instruments, Best Practices, Ways to Achieve and Measure Good Governance At The Local Level. Ethnocultural Diversity Resource Center and the King Baudouin Foundation. Clements, B., Gupta, S., Inchauste, G. (2004). Fiscal Policy for Development: An Overview, In Helping Countries Develop: The Role of Fiscal Policy, ed. S. Gupta, B. Clements and G. Inchauste, Washington, D.C., International Monetary Fund, Canada Working Paper, No. 2006-1.
  8. De Haan, J., Sturm, J., Beekhuıs, G. (1999). The Weak Government Thesis: Some New Evidence, Public Choice, 101,163-176.
  9. Debrun, X., Hauner, D., Kumar, M. (2009).
  10. Independent Fiscal Agencies, Journal of Economic Surveys, 23(1), 44-81.
  11. Dennis A. R. (2007). Public Administration and Democratic Governance: Governments Serving Citizens, 7th Global Forum on Reinventing Government Building Trust in Government 26-29
  12. June, Vienna, Austria. Doğru, B., Şentürk, S. H. (2013). Latin Amerika Ülkelerinde Bütçe Açığı ve Enflasyon Arasındaki Eş Bütünleşme İlişkisinin Analizi. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 41, 89-109.
  13. Edin, P.A., Ohlsson, H. (1991). Political Determinants of Budget Deficits: Coalition Effects Versus Minority Effects, European