Economic globalization and fiscal performance

Jianxun Shi, Ling Xu and Jing Yang

Applied Economics Letters, 2023, vol. 30, issue 17, 2348-2354

Abstract: This study attempts to assess the heterogeneous impact of economic globalization on fiscal performance in 77 countries over the period 1995–2017. We find that for high-income countries, trade globalization will increase their government expenditure, but financial globalization is conducive to increasing their revenue. For low-income countries, economic globalization will help to save their government expenditure, thereby improving their fiscal performance. For emerging countries, while economic globalization increases both government expenditure and revenue, the combined effect is not conducive to their good fiscal performance.

Date: 2023
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DOI: 10.1080/13504851.2022.2097168

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