Arbeitspapier

Fiscal capacity and social protection expenditure in developing nations

There is scant analysis on the causal relationship between fiscal capacity and social protection expenditure in the developing world. We investigate the causal relationship between fiscal capacity of the state and social protection expenditure, hypothesizing that fiscal capacity is necessary but not sufficient for resource allocation in this area. Using a panel data instrumental variable approach, we find that greater fiscal capacity robustly raises social protection spending in developing countries between 1990 and 2010, providing strong evidence for social sector spending being augmented by enhanced fiscal capacity in the presence of a well-functioning democracy.

ISBN
978-92-9256-284-7
Language
Englisch

Bibliographic citation
Series: WIDER Working Paper ; No. 2017/60

Classification
Wirtschaft
National Government Expenditures and Health
Social Security and Public Pensions
National Deficit; Surplus
Macroeconomic Analyses of Economic Development
Subject
fiscal capacity
inequality
institutions
social protection expenditure

Event
Geistige Schöpfung
(who)
Murshed, Syed Mansoob
Badiuzzaman, Muhammad
Pulok, Mohammad Habibullah
Event
Veröffentlichung
(who)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(where)
Helsinki
(when)
2017

DOI
doi:10.35188/UNU-WIDER/2017/284-7
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Murshed, Syed Mansoob
  • Badiuzzaman, Muhammad
  • Pulok, Mohammad Habibullah
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Time of origin

  • 2017

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