THE CRISIS AND FISCAL POLICY IN DEVELOPING COUNTRIES

Abstract

Several years after its burst, the recent economic crisis still has remains on the global economy. Given its magnitude, many countries all over the world adopted measures in order to fight with its effects. Particularly in developed countries, the size of the fiscal stimulus generated an unprecedented effort in academia for assessing the sign and the magnitude of these important fiscal stimuli. Using content analysis, this paper is focusing on studies that are assessing fiscal multipliers in developing countries, principally in European countries and presents the main results. The main conclusion is that there is a very small number of studies that are assessing fiscal multiplier in developing countries and only three identified on countries from Central and Eastern Europe.

Keywords

• fiscal policy
• developing countries
• European Area
• economic crisis
• fiscal multipliers