It is widely perceived that globalization is a threat to tax financed public sector activities. The argument is that … wages and thus a loss of competitiveness. If the importance of the latter effect is reinforced by globalization, it is …

and budget deficits—on long-run growth. It considers the relevance of recent advances in growth theory for low … advances in endogenous growth theory have demonstrated that fiscal policy can have long-run effects on economic growth rates … unlikely to hold in low-income countries. Recent theory particularly stresses the importance for growth of the following. The …