The impact of public education spending on economic growth in Central and Eastern Europe. An ARDL approach with structural break

Coman, Alina Cristina; Lupu, Dan; Nuţă, Florian Marcel

doi:10.1080/1331677x.2022.2086147

Cited by 21 publications

(17 citation statements)

References 31 publications

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“…Though reforms aimed to create jobs and improve lives, more was needed to ensure fiscal sustainability and economic growth. Studies analyze fiscal sustainability’s future challenges as deficit and debt levels exacerbate the financial burden on future generations due to excessive public spending (Coman Nuţă et al, 2023; Lobont et al, 2018; Moldovan et al, 2014; Zeeshan et al, 2022). Egypt’s economy, society, and politics significantly impacted its finances since 1980.…”

Section: Introductionmentioning

confidence: 99%

“…Many developing countries have implemented public finance reforms, including reducing deficits, improving tax systems, and increasing transparency and accountability. Reforms also control current spending, restructure social welfare programs, and maintain sustainable external debt levels to stimulate economic growth (Cigu et al, 2020;Coman Nut xa˘et al, 2023;Moldovan et al, 2014;Nut xa˘et al, 2015;Nut xa˘& Nut xa˘, 2020;Zeeshan et al, 2022). Egypt implemented significant reforms, focusing on higher revenue through broader tax bases, improved collection, reduced exemptions, including informal sectors, and combating evasion, especially the shadow economy.…”

Section: Introductionmentioning

confidence: 99%

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Fiscal Sustainability and Its Implications for Economic Growth in Egypt: An Empirical Analysis

Alshaib,

Al khatib,

Nuta

et al. 2023

SAGE Open

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This study examines the association between fiscal sustainability indicators and Egypt’s economic growth from 1980 to 2018. Fiscal sustainability refers to a government’s ability to generate sufficient revenue to cover its costs and debt obligations in the long run without excessive borrowing or money creation. Egypt’s economic growth has slowed, raising questions about fiscal sustainability. This study aimed to analyze the dynamic relationship between fiscal sustainability indicators (government revenue, expenditure, external debt) and economic growth in Egypt. The autoregressive distributed lag (ARDL) bounds testing approach and unrestricted error correction model were applied to annual data from 1980 to 2018. A dynamic link was found between fiscal sustainability indicators and economic growth. Government expenditure and external debt significantly impacted economic expansion in the long term, while government revenue did not. Fiscal sustainability, measured by growth in total government expenses, external debt obligations, and revenue, significantly influences Egypt’s economic growth. Prudent fiscal management is crucial for sustained economic development. Policymakers should focus on controlling government spending, limiting external debt, and improving revenue generation to promote long-term economic growth in Egypt. Fiscal sustainability must balance critical investments in public services. Carefully managing fiscal deficits is key to unleashing Egypt’s economic potential. This study provides valuable insights into the connection between fiscal policy and economic growth in Egypt, informing policymakers’ decisions.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Fiscal Sustainability and Its Implications for Economic Growth in Egypt: An Empirical Analysis

Alshaib,

Al khatib,

Nuta

et al. 2023

SAGE Open

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“…Это особенно актуально для развивающихся стран, где реальный сектор относительно слаб и недостаточно развит [11]. Например, государственные расходы, направленные на инфраструктуру, позволяют во многом активизировать деятельность бизнеса в экономике [12,13], государственные расходы на образование способствуют развитию человеческого капитала, жизненно важного компонента долгосрочного роста [14,15]. Вместе с тем налоговая часть бюджета может нанести заметный ущерб росту экономики [16][17][18], поскольку в определенной степени те или иные налоги искажают поведение бизнес-субъектов.…”

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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“…A systematic literature review conducted by Benos and Zotou (2014) across 989 previous studies documented generally positive effect of education on gross domestic product (GDP). Interestingly, a study by Coman et al (2023) on the effect of education on GDP across Central and Eastern European countries concluded on the lack of long-term cointegration between those two variables in Lithuania. This suggests that although Lithuania allocates relatively sufficient funding to sustain its education system, outputs of the education are lower than those of other countries.…”

mentioning

confidence: 99%

“…Moreover, since 2008, European countries have experienced a decrease in public education financing as a percentage of their GDP and Lithuania is among the three European Union countries with the greatest decrease, at 1.5% over the last 15 years. According to Eurostat in 2019 public education expenditure (excluding early childhood) relative to GDP in Lithuania was 3.8%, compared to 4.43% in Latvia (data for Estonia is not available), 4.67% in Poland, 4.5 % in the Czech Republic and an average of 4.76% for all European Union countries (see: Coman et al, 2023) for further analysis of public education spending in Central and Eastern Europe and its effect on gross domestic product).…”

mentioning

confidence: 99%

Assessment of public education expenditure efficiency across Lithuanian municipalities

Legenzova,

Gaigalienė,

Rudytė

et al. 2023

Financial Internet Quarterly

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Efficiency of education expenditure is the ability to maximize the educational achievement given the resources invested. Although public education expenditure tends to increase, yet this does not necessarily guarantee high quality of education services. This study aims to assess public education expenditure efficiency of Lithuanian municipalities and to identify the factors explaining its variations. The study used data for 2013-2019 from 60 Lithuanian municipalities. Corrected Ordinary Least Squares method was employed for public education expenditure efficiency assessment and regression analysis was used to determine its influencing factors. Inputs included financial (public expenditure for education and maintenance) and nonfinancial (composition of teachers, occupied area, etc.) variables. Passing ratio of Lithuanian (national) language and math exams were used as efficiency outputs. The context variables represented environmental factors of educational achievements, such as number of business entities, users of social housing, libraries, and culture centres as well as municipalities’ overall financial autonomy. Results of the research are ambiguous. When assessed by the overall passing of the exams, the efficiency was high, scoring 86-90%. But when evaluated by passing exams with the highest scores, it did not even reach 40%. Two types of public expenditure were identified as the most influential factors - public expenditure for education with the negative trend, and municipality own financing with the positive influence on the public education expenditure efficiency. Such results support the decentralization of public education expenditure management and call for alternative output measures in the Lithuanian public education system.

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The impact of public education spending on economic growth in Central and Eastern Europe. An ARDL approach with structural break

Cited by 21 publications

References 31 publications

Fiscal Sustainability and Its Implications for Economic Growth in Egypt: An Empirical Analysis

Fiscal Sustainability and Its Implications for Economic Growth in Egypt: An Empirical Analysis

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

Assessment of public education expenditure efficiency across Lithuanian municipalities

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