An analysis of the contribution of public expenditure to economic growth and fiscal multipliers in Mexico, Central America and the Dominican Republic, 1990-2015

1 August 2017 | Publication

Work area(s)

Economic development

Topic(s)

Economic growth Public income and expenditure

An analysis of the contribution of public expenditure to economic growth and fiscal multipliers in Mexico, Central America and the Dominican Republic, 1990-2015

- Author: Garry, Stefanie; Rivas Valdivia, Juan Carlos
- Physical description: 56 páginas.
- Publisher: ECLAC
- UN symbol (Signature): LC/TS.2017/72
- Date: 1 August 2017

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Abstract

In this research, different complementary approaches are developed to determine the impact of public expenditure on economic growth in Mexico, Central America and the Dominican Republic. The evolution of the countries’ fiscal performance is analyzed; the strong link between public spending and economic growth is verified; the long-run relationship between current and capital expenditure with GDP growth is identified, and it is shown that public spending has a significant multiplier effect in the short and long-term, highlighting its persistence over time.

Table of contents

  • Abstract
  • Introduction
  • I. Fiscal panorama of Mexico, Central America and the Dominican Republic
  • II. Literature review and methodologies for estimating fiscal multipliers
  • III. Contribution of public expenditure to economic growth and fiscal multipliers in Mexico, Central America and the Dominican Republic
  • IV. Conclusions.

SDG(s)

1. No poverty 8. Decent work and economic growth 17. Partnership for the goals

Subregional headquarter(s) and office(s)

Subregional Headquarters, Mexico