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Performance budgeting: effects on government debt and economic growth

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  • Illoong Kwon

Abstract

This article examines the effects of performance budgeting on government debt and economic growth rates. The results show that countries with a higher share of ministries using performance targets in budget negotiation tend to have lower government debt and higher GDP growth rates. A simple fixed-effect model shows similar results. The evidence suggests that these results hold only in those countries with relatively lower corruption.

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  • Illoong Kwon, 2018. "Performance budgeting: effects on government debt and economic growth," Applied Economics Letters, Taylor & Francis Journals, vol. 25(6), pages 388-392, March.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:6:p:388-392
    DOI: 10.1080/13504851.2017.1324607
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