Error Correction Model for Analysis of Influence of Fiscal Policy on Economic Growth in Eu

Vodă, Alina Daniela; Dobrotă, Gabriela; Dobrotă, Dan; Dumitraşcu, Dănuţ Dumitru

doi:10.3846/jbem.2022.16242

Cited by 3 publications

(3 citation statements)

References 25 publications

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“…Sen & Kaya (2015) emphasize that macroeconomic policy plays an important role in achieving economic, rapid and sustainable growth without worsening inflation (which, according to economic theory, is related to the level of interest rates), and the leading tools of macroeconomic policy are monetary policy and fiscal policy. Voda et al (2022) emphasize that it is precisely ensuring fiscal stability in the EU Member States that has become an important task in the current economic situation. Appropriate economic policy can contribute to fiscal consolidation and to contain the fiscal shock that has consequences for national budgets.…”

Section: Introductionmentioning

confidence: 99%

The impact of monetary and fiscal policy variables on the EU economic growth. Panel data analysis

Stawska¹,

Miszczyńska²

2022

JESI

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The financial crisis of 2008-2009 has changed an approach to conducting monetary and fiscal policy. Changing economic conditions forced the economic authorities to make decisions that influenced an interaction between the central bank and the government (policy mix) in the European Union countries. The article aims to identify the impact of variables in the area of monetary and fiscal policy on the economy in the EU countries in existing economic conditions. The article verifies the hypothesis that variables from the monetary and fiscal policy have a statistically significant impact on the GDP per capita growth rate in the EU countries. To achieve the goal and verify the hypothesis, the following research methods were used: presentation of statistical data as well as statistical and econometric research methods (panel model). The rationale for the adoption of this topic was to examine the impact of central bank policy and government in the EU countries on their economies. The contribution of this article is to present the role of monetary and fiscal policy in the economic growth of the EU countries in 2000-2019. The results of the study indicate that the GDP per capita growth rate in 28 European Union countries in the period of 2000-2019 was statistically significantly affected by such variables as: interest rate (from the monetary policy area), GG deficit/surplus (the variable from the area of fiscal policy). This is important information in the context of conducting monetary policy and fiscal policy by relevant decision-makers, i.e., monetary authorities and fiscal authorities in the EU countries.

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Section: Introductionmentioning

confidence: 99%

The impact of monetary and fiscal policy variables on the EU economic growth. Panel data analysis

Stawska¹,

Miszczyńska²

2022

JESI

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“…The numerous competing theories that analyze the link between government spending and economic growth (Keynesian macroeconomic theory, Wagner's law, Peacock and Wiseman displacement effect hypothesis, etc. ), although antagonistic, show consistent results of the determining role that economic growth has on government spending (Szarowska, 2022;Voda et al, 2022).…”

Section: Methodsmentioning

confidence: 52%

Government Artificial Intelligence Readiness and Brain Drain: Influencing Factors and Spatial Effects in the European Union Member States

Iuga,

Socol

2024

Journal of Business Economics and Management

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In the swiftly advancing field of Artificial Intelligence (AI), a field where every country aims to keep pace, significant disparities are observed in how different nations adopt AI. This study explores the deep, yet insufficiently studied, effects of AI on societal, economic, and environmental aspects. It particularly examines how brain drain influences governmental AI implementation capabilities, addressing a gap in existing literature. The study investigates the interplay between government AI implementation and brain drain, factoring in macroeconomic conditions, governance quality, educational levels, and R&D efforts. Utilizing 2022 data from European Union countries, the research employs instrumental-variables regressions (2SLS and LIML) to counteract endogeneity and uses clustering methods for categorizing countries based on their government AI levels, alongside spatial analysis to detect cross-national spillovers and interactions. The findings reveal brain drain’s detrimental effect on governmental AI preparedness, highlight clustering tendencies, and identify spatial interdependencies. This paper underscores the need for strategic policy-making and institutional reforms to bolster government AI capabilities. It advocates for a paradigm shift in government frameworks post-New Public Management era, tailored to the new challenges posed by AI. The research, however, is limited to a single year and region, with constraints on data availability and indicator breadth.

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“…Вопрос о том, могут ли изменения в фискальной политике повлиять на экономический рост, широко освещен в научной литературе [1][2][3][4][5][6]. Фискальная политика играет существенную роль в обеспечении экономического роста в стране [7,8].…”

Section: Introductionunclassified

Assessment of the Impact of Fiscal Policy on Economic Growth in the Republic of Armenia

Voskanyan,

Galstyan

2023

jour

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Fiscal policy plays a crucial role in ensuring economic growth and development in the country and overcoming economic recessions. The subject of the research is the tax system in the Republic of Armenia. The study aims to identify and assess the impact of the fiscal policy on economic growth in the Republic of Armenia. Since the global financial crisis of 2008, the Armenian economy has been in stagnation, reaching pre-crisis GDP levels only in 2018. Both theory and practice point to the ambiguous nature of the impact of fiscal policy on economic growth. At the same time, the 2020 crisis caused by the pandemic exacerbated the situation by focusing the attention of economists on fiscal policy to stimulate the real sector of the economy, which justifies the relevance of the current study. The paper’s novelty lies in assessing the impact of certain types of taxes on the economic growth rates in Armenia. To achieve the goal of the study, the authors use such methods as a comparative analysis of foreign studies and systemic and statistical analysis. To econometrically assess the impact of taxes on economic growth in the country, a vector autoregression (VAR) model was applied. As a result of the study, the authors found that both tax regulation in general and the individual taxes are restrictive in nature and have a negative impact on economic growth in the country. The authors conclude that such a restrictive policy has led to a slowdown in economic growth in the Republic of Armenia over the past decades

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Error Correction Model for Analysis of Influence of Fiscal Policy on Economic Growth in Eu

Cited by 3 publications

References 25 publications

The impact of monetary and fiscal policy variables on the EU economic growth. Panel data analysis

The impact of monetary and fiscal policy variables on the EU economic growth. Panel data analysis

Government Artificial Intelligence Readiness and Brain Drain: Influencing Factors and Spatial Effects in the European Union Member States

Assessment of the Impact of Fiscal Policy on Economic Growth in the Republic of Armenia

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