Table 3

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

Model 3.1Model 3.2Model 3.3
ReferenceContractionaryEfficiency-promoterCompensator
 The ExpansionaryThe ExpansionaryThe Expansionary
ImportFD−1.284**(0.442)−1.167**(0.426)−1.015* (0.418)
ImportFD*Gov.Frac0.027**(0.009)0.024**(0.009)0.019* (0.009)
Gov.Frac−0.001 (0.022)0.037 (0.023)−0.022 (0.021)
Partisanship0.198 (0.331)0.297 (0.347)−0.145 (0.325)
Years (in office)−0.030 (0.059)−0.105 (0.062)−0.039 (0.055)
Undivided Gov’t−0.415 (0.452)0.942* (0.461)−0.792 (0.436)
UnemploymentFD0.535* (0.218)0.476* (0.233)0.305 (0.181)
InflationFD0.154* (0.061)0.056 (0.045)0.225**(0.065)
Import_1−0.092**(0.033)−0.100**(0.032)−0.075* (0.033)
ExportFD−0.172 (0.103)−0.068 (0.111)−0.073 (0.096)
FDIFD−0.034 (0.025)−0.014 (0.030)−0.016 (0.026)
LnGDPPCFD−13.50 (11.47)−11.63 (10.16)6.10 (8.54)
Growth_1−0.248**(0.094)−0.042 (0.076)−0.183* (0.075)
DebtFD−0.010 (0.010)−0.008 (0.009)0.003 (0.009)
 The CompensatorThe ContractionaryThe Efficiency-promoter
ImportFD−0.269 (0.320)0.117 (0.353)0.152 (0.321)
ImportFD*Gov.Frac0.008 (0.007)−0.004 (0.007)−0.005 (0.006)
Gov.Frac0.020 (0.021)0.038 (0.022)−0.059**(0.023)
Partisanship0.343 (0.327)0.099 (0.322)−0.442 (0.354)
Years (in office)0.008 (0.058)−0.075 (0.062)0.066 (0.061)
Undivided Gov’t0.377 (0.480)1.357**(0.477)−1.734**(0.490)
UnemploymentFD0.230 (0.214)−0.059 (0.198)−0.171 (0.227)
InflationFD−0.071 (0.059)−0.098 (0.058)0.169**(0.063)
Import_1−0.017 (0.030)−0.008 (0.029)0.024 (0.030)
ExportFD−0.099 (0.092)0.104 (0.111)−0.005 (0.104)
FDIFD−0.018 (0.019)0.021 (0.030)−0.003 (0.030)
LnGDPPCFD−19.60 (11.40)1.87 (11.37)17.73 (9.88)
Growth_1−0.065 (0.088)0.205* (0.082)−0.140 (0.071)
DebtFD−0.013 (0.010)0.002 (0.010)0.011 (0.009)
N527527527
χ25480.48**5487.28**5499.78**

Note(s): Multinomial logit estimates with four categories. Compensation spending as % of total government spending. 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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