Does economic complexity reduce the probability of a fiscal crisis?

World Development, Journal Year: 2023, Volume and Issue: 168, P. 106250 - 106250

Published: April 5, 2023

Fiscal crises are costly but not rare. It is crucial to prioritize preventing such crises. While several studies have explored the impact of macroeconomic variables and international factors on fiscal outcomes, little attention has been given role a country's productive structure sophistication. Does ability export diversified less ubiquitous goods significantly reduce likelihood crisis? To answer this question, we use hazard duration analysis comprehensive dataset 172 countries (spanning over 200 crisis episodes) between 1995 2020. We show that economic complexity significant experiencing crisis. A one-point increase in Economic Complexity Index reduces probability by half. This effect robust across low-income, emerging, advanced economies. Institutional also play an essential reducing risk crisis, whereas as debt-to-output ratio, real rate growth, inflation, terms trade, balance no impact. Our results indicate development strategy should increasing vulnerability. By crises, contributes stability, which fundamental condition for development.

Language: Английский

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Commodity prices volatility and economic growth: Empirical evidence from natural resources industries of China

Resources Policy, Journal Year: 2022, Volume and Issue: 80, P. 103152 - 103152

Published: Dec. 5, 2022

Language: Английский

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Ecological response to industrialisation drivers in Africa

Environmental Development, Journal Year: 2023, Volume and Issue: 47, P. 100896 - 100896

Published: July 6, 2023

Language: Английский

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Resource curse hypothesis in COP26 perspective: Access to clean fuel technology and electricity from renewable energy

Resources Policy, Journal Year: 2023, Volume and Issue: 82, P. 103448 - 103448

Published: March 29, 2023

Language: Английский

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Trade balance, monetary supply, commodity prices, and greener energy growth: contextual evidence from BRICS economies in the lens of sustainability

Environmental Science and Pollution Research, Journal Year: 2023, Volume and Issue: 30(29), P. 73928 - 73940

Published: May 18, 2023

Language: Английский

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