Countercyclical fiscal policy, international financial crisis and economic growth in Brazil.

Vol. 31 No. 5 (2011)

Dec / 2011
Published December 1, 2011
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Gadelha, Sergio Ricardo de Brito. 2011. “Countercyclical Fiscal Policy, International Financial Crisis and Economic Growth in Brazil.”. Brazilian Journal of Political Economy 31 (5):794-812. https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/385.

Countercyclical fiscal policy, international financial crisis and economic growth in Brazil.

Sergio Ricardo de Brito Gadelha
Analista da Secretaria do Tesouro Nacional. Mestre e doutorando em Economia pela Universidade Católica de Brasília.
Brazilian Journal of Political Economy, Vol. 31 No. 5 (2011), Dec / 2011, Pages 794-812

Abstract

 This study analyzes the long run equilibrium relationship and causality between economic growth and public expenditure in Brazil covering the period 1980-2008. The empirical results of the Granger causality test in a multivariate framework have shown up the importance of public investments not only to face the adverse effects of the international financial crisis, but also in stimulating the economic growth. Also, the results indicate the need of controlling the growing path of other current expenditure, social security and public debt.

JEL Classification: C32; E62; F43; H11; H50.


Keywords: countercyclical fiscal policy government expenditures economic growth Granger causality