Naslov
Effects of fiscal consolidation in EU integration process

Autori
Obadić, Alka

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

Izvornik
3rd International Conference An Enterprise Odyssey: Integration or Disintegration, Zagreb : proceedings / Galetić, Lovorka - Zagreb : Ekonomski fakultet Sveučilišta u Zagrebu, 2006, 363-377

ISBN
9536025183

Skup
International Conference An Enterprise Odyssey: Integration and Disintegration (3 ; 2006)

Mjesto i datum
Zagreb, Hrvatska, 15.06.2006. - 17.06.2006

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
fiscal consolidation; fiscal convergence criteria; output growth; EU

Sažetak
All economists believe that fiscal consolidation is beneficial for the economy in the long term. However, most economists suppose that the same fiscal consolidation inevitably causes temporary slow-downs - i.e. we have long-term benefit at the price of short-term problem. However, more recent economic studies show that these short-term problems are not in fact inevitable. The special attention of this paper concentrates to the ongoing dilemma whether government expansion helps or hinders economic growth. The main question of the research could be expressed as why is it important at all to insist on health and consolidated public finance? Correlation analysis accomplished in EU during 2005 show positive correlation between budget balance and GDP growth rates and negative correlation between general government debt and GDP growth rates. Tested models prove that analysed old and new EU members which satisfy fiscal convergence criteria during 2005 have higher growth rates, confirming start study hypothesis. However, it has to be stressed that the relationship between government spending and economic growth may depend on factors that change over time what should be included in some future researches.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA