Asia and Latin America: a fiscal comparison
Abstract
A comparison between East and Southeast Asian countries and Latin American
countries is made with respect to public finance, Special emphasis is placed on a fiscal
comparison during the 1970s and the 1980s. Government deficits widened more in Latin
America than in Asia in the corresponding two periods. An unprecedent price hike in Latin
America is positively related to these large deficits. Remarkable increases in interest payments
for public debts during the 90s in Latin America narrowed the margin of fiscal policies.
Therefore, some measures on debt relief. as well as fundamental tax reform are urgently
needed in Latin America.
JEL Classification: H11; H50; H60.
Keywords: public sector funding public spending