Naslov
Public expenditures and economic growth: the case of the Republic of Croatia

Autori
Grdinić, Maja

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
48th International Scientific Conference on Economic and Social Development Development – "Managerial Issues in Modern Business" / Przygoda, Miroslaw ; Misevic, Petar ; Machrafi, Mustapha - Varaždin : VADEA, 2019, 198-206

Skup
48th International Scientific Conference on Economic and Social Development Development

Mjesto i datum
Varšava, Poljska, 25.11.2019. - 26.11.2019

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
economic growth ; fiscal policy ; public expenditures ; Republic of Croatia

Sažetak
Within fiscal policy, one of the main instruments for stimulating economic growth are public expenditures. However, economic theory has shown that public expenditures can have a positive and negative impact on growth and that this impact can be short-term and long-term. In order to look at the effects of government spending policy on economic growth it is necessary to divide the total amount of public expenditure into several categories and analyse them separately. The most commonly used approach is the division of public expenditures into government spending and investment. Government spending is generally considered to have a negative impact on economic growth, while investment has a positive effect. However, given that some categories of government spending have a positive impact on economic growth (expenditure on infrastructure, education and health) such a division is not enough. Therefore, in economic theory, it is common to divide public expenditures into productive and unproductive public expenditures. Productive expenditures include expenditures for health, education, research and development, public infrastructure, while unproductive expenditures include expenditures for the military, administration, social benefits, salaries, etc. However, the main problem in the economic literature is that it cannot be provided a general conclusion about the impact of certain categories of public expenditure on economic growth for all countries, and the impact is different in developed countries and developing countries. The purpose of this paper is to critically analyse the theoretical and empirical literature on the relationship between public expenditure and economic growth and to provide an overview of various categories of public expenditure in the Republic of Croatia in the period from 2008 to 2018. Accordingly, the analysis will show how the growth of total public expenditures, as well as various components of public expenditures, influence the economic growth of the Republic of Croatia.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA