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The relationship between fiscal policy and economic growth in CEE countries (CROSBI ID 287933)

Prilog u časopisu | prethodno priopćenje | međunarodna recenzija

Hodžić, Sabina ; Demirović, Amer ; Bečić, Emira The relationship between fiscal policy and economic growth in CEE countries // Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu, 38 (2020), 2; 653-666. doi: 10.18045/zbefri.2020.2.653

Podaci o odgovornosti

Hodžić, Sabina ; Demirović, Amer ; Bečić, Emira

engleski

The relationship between fiscal policy and economic growth in CEE countries

The relationship and effects between fiscal policy and economic growth have been an important theoretical and empirical research topic. The neoclassical models imply that the economic effects of changes in government spending will be neutralised by the impact of consequent changes in private spending. Endogenous growth models, on the other hand, imply that changes in the level and composition of taxation and government expenditure can affect economic growth. This aim of the paper is to explore the relationship and effects of fiscal policy and economic growth in 21 Central and Eastern European (CEE) countries over the period 2000-2018. The results, after controlling for various common and country- specific variables, imply that an increase in taxation, but not in non-productive expenditures, can positively affect economic growth. Our main findings are: (i) there is a significant and positive contemporaneous relationship between the general level of taxation and economic growth ; and (ii) there is no relationship between the government final consumption and economic growth. Therefore, our results contributed to the scientific literature by providing empirical evidence on the contemporaneous relationship between the general government tax receipt and economic growth in CEE countries

fiscal policy, economic growth, panel data analysis, Central and Eastern European countries

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Podaci o izdanju

38 (2)

2020.

653-666

objavljeno

1331-8004

1846-7520

10.18045/zbefri.2020.2.653

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Ekonomija

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