Public investment and fiscal performance in new EU member states

Jan Hanousek and Evžen Kočenda

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: In this paper we analyze the dynamics of public investment and public finance in new members of the European Union, and also how these sectors were affected by changes in economic freedom and corruption. In terms of public finance (deficit and debt) we detect mostly improvement when there is less economic regulation. However, the effect of corruption with respect to public finance is not that conclusive. When we assess the role of regulation and corruption on public investment, we find that reductions in corruption as well as improvements in economic freedom tend to be associated with decreases in public investment. Further, we show that a rise in public investment often serves as an impetus for an increase in corruption.

Keywords: Public finance; public investment; economic freedom; corruption; EU convergence and integration; macroeconomic policy; fiscal reforms; new EU members (search for similar items in EconPapers)
JEL-codes: E61 E62 F42 H50 H60 O11 (search for similar items in EconPapers)
Date: 2010-03-15
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Citations: View citations in EconPapers (1)

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http://wp.demm.unimi.it/files/wp/2010/DEMM-2010_007wp.pdf (application/pdf)

Related works:
Journal Article: Public Investment and Fiscal Performance in the New EU Member States (2011)
Working Paper: Public Investment and Fiscal Performance in New EU Member States (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:mil:wpdepa:2010-07

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