EconPapers    
Economics at your fingertips  
 

Fiscal Stimulus and Firms’ Sales and Capital Expenditure During the Global Financial Crisis

Carolina Correa-Caro (), Leandro Medina (), Marcos Poplawski-Ribeiro and Bennett Sutton ()
Additional contact information
Carolina Correa-Caro: Inter-American Development Bank
Bennett Sutton: International Monetary Fund

Comparative Economic Studies, 2021, vol. 63, issue 3, No 9, 489-535

Abstract: Abstract Using firm-level data from the Refinitiv Datastream Worldscope database for more than 17,253 non-financial firms in 45 advanced and emerging economies, this paper examines how fiscal stimulus interacted with sectoral business cycle sensitivity has affected firms’ sales and capital expenditures during the global financial crisis. Cross-sectional analyses indicate that reductions in structural fiscal balances are associated with higher firms’ sales and capital expenditures (as percentage of their total assets) in 2009. This result is obtained notably for the manufacturing and construction industries and for different regions depending on the firm performance variable. Our findings have key implications for the design of fiscal response to shocks at industry and firm levels, including during the current COVID-19 pandemic.

Keywords: Fiscal stimulus; Global financial crisis; Firm sales and capital expenditures; Firm-level data (search for similar items in EconPapers)
JEL-codes: C33 E32 E62 H62 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41294-021-00160-5 Abstract (text/html)
Access to full text is restricted to subscribers.

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:pal:compes:v:63:y:2021:i:3:d:10.1057_s41294-021-00160-5

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

DOI: 10.1057/s41294-021-00160-5

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2024-12-28
Handle: RePEc:pal:compes:v:63:y:2021:i:3:d:10.1057_s41294-021-00160-5