Determinants of Government Spending in a Fragile Economy

DEBT – Government Debt: Measures the level of government indebtedness. NER – Nominal Exchange Rate: Captures movements in the domestic currency relative to the reference foreign currency. CPI – Consumer Price Index: Measures changes in the general price level.

TOT – Terms of Trade: Captures changes in the relative prices of exports and imports and represents external trade conditions. GE – Government Effectiveness: Captures institutional quality related to public service delivery, policy formulation and implementation, and government credibility. The empirical relationship is specified generally as GS = f(GR, DEBT, NER, CPI, TOT, GE).

The deposited materials are intended to enable researchers, editors, and reviewers to trace the empirical results reported in the associated study to the underlying data and supporting analytical materials.