Utilizing　an　action-based　database　of　fiscal　consolidation　episodes　in　a　group　of　Latin　America　and　Caribbean　(LAC)　countries,　this　paper　investigates　the　impact　of　fiscal　consolidation　policies　on　developing　countries＇　long-term　total　factor　productivity　(TFP).　We　adopted　a　panel　multiple　regression　method　to　capture　the　aforementioned　impact,　while　including　two　different　frameworks　of　TFP　determinants　as　controlling　components　for　robustness　checks.　Our　model　finds　that　on　average,　these　fiscal　consolidation　episodes　have　statistically　significant　negative　impact　on　their　host　countries＇　TFP　levels.　Specifically,　our　model　finds　that　the　size　of　fiscal　consolidation　episodes　(measured　as　percentage　of　host　country　GDP)　has　significant　negative　effect　on　host　countries＇　TFP　levels,　and　that　expenditure　cuts　are　better　policy　option　than　tax　increases　in　this　regard.　©　2021　ACM.