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Theoretical and Applied Economics
No. 2 / 2017 (611), Summer

Impact of governance on budget deficit in developing countries

Gaziosmanpasa University, Tokat, Turkey
Abdullah BARIS
Gaziosmanpasa University, Tokat, Turkey

Abstract. Since 1980s, many fundamental changes have been experienced in many areas especially in economy and politics. Financial administration was also affected by this change. In this regard, traditional administration mentality was re-interpreted as a transparent, accountable and participant manner based on rule of law. Studies on the political determinants of budget deficits are heavily focused on political behaviours. There is a gap in the literature in the issue of relationship between budget deficits and governance which represents an administration approach based on specific principles as different from political behaviours. This study analyzes the relationship between budget deficits and governance through panel data analysis in 123 developing countries for 2002-2014 periods.

Keywords: governance, budget deficit, institutions, developing countries, panel data.

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The Economicity. The Epistemic Landscape, Marin Dinu, 2016


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