Performance budgeting: effects on government debt and economic growth |
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Authors: | Illoong Kwon |
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Institution: | Graduate School of Public Administration, Seoul National University, Seoul, Korea |
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Abstract: | This article examines the effects of performance budgeting on government debt and economic growth rates. The results show that countries with a higher share of ministries using performance targets in budget negotiation tend to have lower government debt and higher GDP growth rates. A simple fixed-effect model shows similar results. The evidence suggests that these results hold only in those countries with relatively lower corruption. |
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Keywords: | Performance budgeting government debt economic growth corruption |
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