Effects of fiscal consolidation in Western Balkan Countries

Krajišnik, Milenko; Gligorić, Dragan; Gojković, Biljana

doi:10.18045/zbefri.2019.2.527

Cited by 2 publications

(4 citation statements)

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“…The assessment of both the central government's and local governments' current accounts encompasses a comprehensive examination of expenditures and revenues for both the public and private sectors. According to study by Krajišnik et al (2019), these financial activities have a direct impact on the general social welfare of the population. Notably, there has been a discernible upward trend in these accounts in recent years, demonstrating a commendable effort to operate within the confines of budgetary limits.…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to the data presented after the crisis that was caused by the closure of the economy due to the COVID-19 pandemic, in 2021 there was a rise in the Gross Domestic Product of WB 6 countries, on average, of 7.4%. The rise of governmental revenues and spending has been positively impacted by this and, to a lesser extent, by private investments and rapid growth in goods exports (Krajišnik, Gligorić, & Gojković, 2019;WB, 2020;Ziberi et al, 2021). The economic structure of the WB countries is similar in terms of GDP, and they have the same challenges in terms of economic sustainability.…”

Section: Introductionmentioning

confidence: 99%

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Public spending and economic growth: Evidence from the Western Balkans

Mustafa,

Abdullahu

2024

IJAEFA

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The objective of this study is to examine the relationship between public expenditures, foreign investments, and the growth of the Gross Domestic Product (GDP) for the years 2002-2021 in the countries of the Western Balkans (BB6) and Croatia. The analysis includes data on $2.8 trillion of GDP, $668 billion of public expenditures, and $160 billion of FDI for these states. The methodology used in this study is based on a detailed examination of public expenditures and their impact on the Gross Domestic Product. This article investigates two hypotheses, thoroughly assessing their impact on GDP growth. Through the use of the Ordinary Least Squares (OLS) econometric model, concrete results with over 95% reliability have been obtained. The variables are determined based on multiple regressions for the findings we will obtain based on econometric calculations using the fixed effects, standard deviation, mean, and linear regression models. The findings of this study relate directly to the stated aims and objectives of the publication. The results presented in the study are an essential component of the study's conclusions. We found that some independent factors have a uniform impact on GDP growth, while others have a significant impact on real growth. Also, our findings confirm economic theories that argue that an increase in government spending leads to an increase in GDP. The data show that public investment in the Western Balkans has historically been overlooked, a gap in the literature that our research attempts to fill.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Public spending and economic growth: Evidence from the Western Balkans

Mustafa,

Abdullahu

2024

IJAEFA

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“…The rule is that the greater the increase in public debt in the period before consolidation, the greater the probability of success of fiscal adjustment (Alesina and Ardagna, 1998). On the other hand, fiscal consolidation can affect the reduction of risk premiums, and thus interest rates on borrowing abroad (Krajišnik, Gligorić, Gojković, 2019). There are studies that have shown that fiscal consolidation has a positive impact on economic growth, and these are: Denmark 1983-86, Finland 1992-98, Sweden 1993-98.…”

Section: Theoretical Aspects Of Researchmentioning

confidence: 99%

“…This type of instability usually leads to the need for fiscal consolidation. Fiscal consolidation is a process of reducing the budget deficit in order to balance public revenues and public expenditures (Krajišnik, Gligorić, Gojković, 2019). The fiscal consolidation process is most commonly carried out on the basis of increased revenues, reduced expenditures or a combination of both methods.…”

Section: Introductionmentioning

confidence: 99%

The Impact of the Covid 19 Crisis on the Fiscal Stability of Republic of Srpska

Gojković¹

2022

Economics

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The consequences of the COVID-19 crisis have had a negative impact on the fiscal stability of Republic of Srpska. Although the crisis is not officially over yet, a large number of countries needed to implement fiscal consolidation. Republic of Srpska is one of the small and open economies that are exposed to various negative market distortions. COVID-19 crisis of the most important foreign trade partners of the Republic Srpska has had a negative impact on the economy of Republic Srpska. The basic idea of the paper is based on the need to analyze the impact of the COVID-19 crisis on the fiscal stability and public finances of Republic of Srpska. The subject of the research is the analysis of the implementation of the fiscal consolidation procedure in Republic of Srpska and the impact on its economic growth. For the implementation of fiscal consolidation, the choice of methods and instruments on which the process of implementing fiscal consolidation is based is very important. Fiscal consolidation is necessary due to the consequences caused by the COVID-19 crisis and the enormous growth of the deficit. The analysis proves that the measures applied to rehabilitate the crisis have resulted in improved fiscal stability, which ultimately had a positive impact on economic growth. Fiscal consolidation will be successful and expansive if it is carried out by a combined method of increasing revenues and reducing expenditures and if the increase in revenues is caused by the growth of economic activity and not by the tax burden.

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Effects of fiscal consolidation in Western Balkan Countries

Cited by 2 publications

References 0 publications

Public spending and economic growth: Evidence from the Western Balkans

Public spending and economic growth: Evidence from the Western Balkans

The Impact of the Covid 19 Crisis on the Fiscal Stability of Republic of Srpska

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