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What is Vulnerable During Fiscal Retrenchment?
Author(s) -
Fardmanesh M.,
Habibi N.
Publication year - 2000
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/1468-0343.00070
Subject(s) - retrenchment , vulnerability (computing) , socioeconomic status , democracy , politics , economic sector , development economics , economics , economic policy , political instability , business , public economics , political science , economy , public administration , population , demography , computer security , sociology , computer science , law
Using data for 70 countries in the 1980s, this study investigates the impact of socioeconomic and political characteristics of a country on the vulnerability of expenditure categories during budget cuts. Greater democracy is associated with less vulnerability of the social and productive sectors and with more vulnerability of the administrative/defense, infrastructure, and miscellaneous sectors. Political instability reduces the vulnerability of the social, administrative/defense, and miscellaneous sectors and increases that of the productive sector. Fiscal federalism increases the vulnerability of the infrastructure and administrative/defense sectors and reduces that of the productive sector. The relative size of the budget cuts is also a determining factor.