EconPapers    
Economics at your fingertips  
 

Economic, Political and Institutional Determinants of Budget Deficits Volatility: A Panel Data Analysis

Asma Arif and Mujahid Hussain

International Journal of Economics & Business Administration (IJEBA), 2018, vol. VI, issue 3, 98-114

Abstract: This study has a major motivation to empirically find the fundamentals of budget deficit instability for the period 1984 to 2016 using panel data for South Asia and ASEAN countries. As main determinants the study has considered the role of institutions, governance variables like corruption, political instability, military in politics and conflicts. The economic data is collected from international financial statistics and world development indicators. The data on political variables are collected from International Country Risk Data Guide (ICRG). Panel data models like Fixed Effect and Random Effect Model are used to test the volatility of budget deficit. To make a comparison between results of panel data models and time series analysis this study also makes an arrangement analysing individual countries, using time series data. The results of panel data models and time series models of individual countries both confirm that corruption and political stability are important indicators of budget deficit. To avoid high and unstable deficit attention should be diverted to improve the institutional setup of the economy.

Keywords: Pubic Policy; Macroeconomic stability; Fiscal deficit; Panel data; South Asia & ASEAN. (search for similar items in EconPapers)
JEL-codes: H5 H6 H3 H4 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.ijeba.com/journal/166/download (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:vi:y:2018:i:3:p:98-114

Access Statistics for this article

More articles in International Journal of Economics & Business Administration (IJEBA) from International Journal of Economics & Business Administration (IJEBA)
Bibliographic data for series maintained by Marios Agiomavritis (). This e-mail address is bad, please contact .

 
Page updated 2019-11-14
Handle: RePEc:ers:ijebaa:v:vi:y:2018:i:3:p:98-114