Government fractionalization and fiscal policy response to globalization (1980–2011)
| Model 2.1 | Model 2.2 | Model 2.3 | |
|---|---|---|---|
| Reference | Contractionary | Efficiency-promoter | Compensator |
| The Expansionary | The Expansionary | The Expansionary | |
| ImportFD | −1.140**(0.398) | −0.809* (0.395) | −0.714 (0.392) |
| ImportFD*Gov.Frac | 0.025**(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) |
| UnemploymentFD | 0.606**(0.209) | 0.392 (0.203) | 0.083 (0.206) |
| InflationFD | 0.104 (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 Contractionary | The Efficiency-promoter | |
| ImportFD | −0.426 (0.328) | 0.330 (0.336) | 0.096 (0.325) |
| ImportFD*Gov.Frac | 0.012 (0.006) | −0.009 (0.007) | −0.003 (0.006) |
| Gov.Frac | 0.015 (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) |
| UnemploymentFD | 0.523* (0.215) | −0.214 (0.174) | −0.309 (0.211) |
| InflationFD | −0.109 (0.065) | −0.089 (0.054) | 0.197**(0.067) |
| Import_1 | 0.014 (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) |
| N | 546 | 546 | 546 |
| χ2 | 185.15** | 185.15** | 185.15** |
| Model 2.1 | Model 2.2 | Model 2.3 | |
|---|---|---|---|
| Reference | Contractionary | Efficiency-promoter | Compensator |
| −1.140**(0.398) | −0.809* (0.395) | −0.714 (0.392) | |
| 0.025**(0.008) | 0.017* (0.008) | 0.013 (0.008) | |
| −0.024 (0.021) | 0.000 (0.021) | −0.039 (0.021) | |
| −0.204 (0.314) | −0.207 (0.334) | −0.146 (0.356) | |
| −0.013 (0.060) | −0.067 (0.061) | −0.049 (0.062) | |
| −0.877* (0.435) | 0.507 (0.455) | −0.590 (0.434) | |
| 0.606**(0.209) | 0.392 (0.203) | 0.083 (0.206) | |
| 0.104 (0.061) | 0.016 (0.108) | 0.213**(0.069) | |
| −0.034 (0.032) | −0.076 (0.048) | −0.048 (0.033) | |
| −0.288**(0.100) | −0.134 (0.103) | −0.105 (0.083) | |
| −0.018 (0.021) | 0.006 (0.026) | −0.003 (0.022) | |
| −32.54**(12.49) | −34.12 (10.36) | 0.185 (9.31) | |
| −0.185* (0.089) | 0.01 (0.079) | −0.167* (0.084) | |
| −0.005 (0.011) | −0.007 (0.010) | 0.001 (0.011) | |
| −0.426 (0.328) | 0.330 (0.336) | 0.096 (0.325) | |
| 0.012 (0.006) | −0.009 (0.007) | −0.003 (0.006) | |
| 0.015 (0.021) | 0.024 (0.019) | −0.039 (0.021) | |
| −0.057 (0.337) | −0.003 (0.290) | 0.061 (0.361) | |
| 0.036 (0.059) | −0.055 (0.055) | 0.018 (0.061) | |
| −0.287 (0.469) | 1.384**(0.452) | −1.097*(0.485) | |
| 0.523* (0.215) | −0.214 (0.174) | −0.309 (0.211) | |
| −0.109 (0.065) | −0.089 (0.054) | 0.197**(0.067) | |
| 0.014 (0.030) | 0.012 (0.027) | −0.027 (0.029) | |
| −0.183* (0.089) | 0.154 (0.092) | 0.029 (0.096) | |
| −0.016 (0.019) | 0.025 (0.030) | −0.009 (0.026) | |
| −32.73* (13.01) | −1.58 (10.47) | 34.31**(10.77) | |
| −0.018 (0.083) | 0.186**(0.069) | −0.168*(0.075) | |
| −0.006 (0.010) | −0.002 (0.009) | 0.008 (0.008) | |
| 546 | 546 | 546 | |
| 185.15** | 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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