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Expenditure reductions in developing countries revisited
Author(s) -
Hicks Norman L.
Publication year - 1991
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.4010030103
Subject(s) - developing country , debt service coverage ratio , capital expenditure , government expenditure , economics , government (linguistics) , debt , service (business) , developed country , capital (architecture) , development economics , public economics , external debt , business , economic growth , macroeconomics , finance , public finance , economy , population , history , linguistics , philosophy , demography , archaeology , sociology
During the 1980s, various factors have caused developing countries to reduce government expenditures in real terms. In many countries, rising debt service burdens have squeezed non‐debt service expenditures. This paper examines data for 24 developing countries, to see which kinds of expenditures were cut and which were protected. In general, it finds that capital expenditures were reduced more than current expenditures. Among the various sectors of government expenditure, the social sectors and defence were relatively protected, while the productive and infrastructure sectors bore a relatively larger burden of the adjustments.