MALİ DİSİPLİN ÜZERİNDE POLİTİK FAKTÖRLERİN ETKİSİ: AZ GELİŞMİŞ VE GELİŞMEKTE OLAN ÜLKELERE YÖNELİK UYGULAMALI BİR ANALİZ

The deterioration in fiscal discipline has become more permanent in the majority of developed and developing countries, as a result of increasing budget deficits in the direction of economic development and welfare state purposes after the Second World War. It is understood that the differentiation observed in fiscal balance in countries withsimilar development levels is not only explained by fiscal targets and macroeconomic shocks, but also political factors are influential. Hence, the aim of the study is to examine the impact of political factors on the fiscal balance in underdeveloped and developing countries. In accordance with this purpose, the effect of 14 variables representing political factors on public debt stock is analyzed by panel GMM method for a sample of 49 underdeveloped and developing countries over the period of 1985-2012. The results show that 11 of the political factors -which can be grouped into the regime, political stability, structure of parliament and government- have a significant effect on the public debt stock.