01772cas a2200253 a 4500 AALejournalIMF009751 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869019 1018-5941 BD-DhAAL BD-DhAAL Ota, Rui. Big Government, High Debt, and Fiscal Adjustment in Small States / Rui Ota, Stephanie Medina Cas. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (45 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using a new fiscal dataset for small states, this paper analyzes the link between country size, government size, debt, and economic performance. It finds that on average small states have larger governments and higher public debt. Although there are intrinsic factors that explain why governments are bigger in small states, those with smaller governments and lower public debt tend to grow faster and are less vulnerable. Large fiscal adjustments, primarily through expenditure restraint, can underpin growth, although sometimes other elements can also impact. Since better governance is associated with lower debt, fiscal adjustment should be supported by governance improvements. Mode of access: Internet Medina Cas, Stephanie. IMF Working Papers; Working Paper ; No. 2008/039 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/039/001.2008.issue-039-en.xml IMF e-Library