Table 2

Government fractionalization and fiscal policy response to globalization (1980–2011)

Model 2.1Model 2.2Model 2.3
ReferenceContractionaryEfficiency-promoterCompensator
 The ExpansionaryThe ExpansionaryThe Expansionary
ImportFD−1.140**(0.398)−0.809* (0.395)−0.714 (0.392)
ImportFD*Gov.Frac0.025**(0.008)0.017* (0.008)0.013 (0.008)
Gov.Frac−0.024 (0.021)0.000 (0.021)−0.039 (0.021)
Partisanship−0.204 (0.314)−0.207 (0.334)−0.146 (0.356)
Years (in office)−0.013 (0.060)−0.067 (0.061)−0.049 (0.062)
Undivided Gov’t−0.877* (0.435)0.507 (0.455)−0.590 (0.434)
UnemploymentFD0.606**(0.209)0.392 (0.203)0.083 (0.206)
InflationFD0.104 (0.061)0.016 (0.108)0.213**(0.069)
Import_1−0.034 (0.032)−0.076 (0.048)−0.048 (0.033)
ExportFD−0.288**(0.100)−0.134 (0.103)−0.105 (0.083)
FDIFD−0.018 (0.021)0.006 (0.026)−0.003 (0.022)
LnGDPPCFD−32.54**(12.49)−34.12 (10.36)0.185 (9.31)
Growth_1−0.185* (0.089)0.01 (0.079)−0.167* (0.084)
DebtFD−0.005 (0.011)−0.007 (0.010)0.001 (0.011)
 The Compensator The ContractionaryThe Efficiency-promoter
ImportFD−0.426 (0.328)0.330 (0.336)0.096 (0.325)
ImportFD*Gov.Frac0.012 (0.006)−0.009 (0.007)−0.003 (0.006)
Gov.Frac0.015 (0.021)0.024 (0.019)−0.039 (0.021)
Partisanship−0.057 (0.337)−0.003 (0.290)0.061 (0.361)
Years (in office)0.036 (0.059)−0.055 (0.055)0.018 (0.061)
Undivided Gov’t−0.287 (0.469)1.384**(0.452)−1.097*(0.485)
UnemploymentFD0.523* (0.215)−0.214 (0.174)−0.309 (0.211)
InflationFD−0.109 (0.065)−0.089 (0.054)0.197**(0.067)
Import_10.014 (0.030)0.012 (0.027)−0.027 (0.029)
ExportFD−0.183* (0.089)0.154 (0.092)0.029 (0.096)
FDIFD−0.016 (0.019)0.025 (0.030)−0.009 (0.026)
LnGDPPCFD−32.73* (13.01)−1.58 (10.47)34.31**(10.77)
Growth_1−0.018 (0.083)0.186**(0.069)−0.168*(0.075)
DebtFD−0.006 (0.010)−0.002 (0.009)0.008 (0.008)
N546546546
χ2185.15**185.15**185.15**

Note(s): Multinomial logit estimates with four categories. Compensation spending as % of the GDP. Country fixed effects. Robust standard errors. p-values: **p < 0.01, *p < 0.05. Two-tailed tests

Source(s): Table by authors

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