ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIES
Fiscal policy is one of the key issues for every government. In the endogenous growth model, fiscal policy is included as a key factor determining the growth of the economy. The focus in this study is placed on eleven East European transitional countries for the period of 1995 to 2014. The model in...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2017-05-01
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| Series: | Economic Review |
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| Online Access: | http://er.ef.untz.ba/index.php/er/article/view/106 |
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| _version_ | 1823861230794702848 |
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| author | Mahir Hrnjić Azra Branković |
| author_facet | Mahir Hrnjić Azra Branković |
| author_sort | Mahir Hrnjić |
| collection | DOAJ |
| description |
Fiscal policy is one of the key issues for every government. In the endogenous growth model, fiscal policy is included as a key factor determining the growth of the economy. The focus in this study is placed on eleven East European transitional countries for the period of 1995 to 2014. The model includes both sides of government finance, taxation and expenditures, with expenditures being grouped into homogeneous categories in order to increase the structural efficiency. We find a positive impact on growth for certain government expenditures such as expenditures aimed at improving human resources, property protection and social investment and a negative one for distortionary taxation. The results provide empirical evidence for the theoretical predictions of endogenous growth.
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| format | Article |
| id | doaj-art-09368bc21dbe45e1ae60ff3989311dae |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2017-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-09368bc21dbe45e1ae60ff3989311dae2025-02-10T00:31:09ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2017-05-01151ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIESMahir Hrnjić0Azra Branković1International University of Sarajevo, Faculty of Business and Administration, Bosnia and HerzegovinaInternational University of Sarajevo, Faculty of Business and Administration, Bosnia and Herzegovina Fiscal policy is one of the key issues for every government. In the endogenous growth model, fiscal policy is included as a key factor determining the growth of the economy. The focus in this study is placed on eleven East European transitional countries for the period of 1995 to 2014. The model includes both sides of government finance, taxation and expenditures, with expenditures being grouped into homogeneous categories in order to increase the structural efficiency. We find a positive impact on growth for certain government expenditures such as expenditures aimed at improving human resources, property protection and social investment and a negative one for distortionary taxation. The results provide empirical evidence for the theoretical predictions of endogenous growth. http://er.ef.untz.ba/index.php/er/article/view/106East European countriesFiscal PolicyPublic ExpendituresTaxationEconomic growth |
| spellingShingle | Mahir Hrnjić Azra Branković ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIES Economic Review East European countries Fiscal Policy Public Expenditures Taxation Economic growth |
| title | ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIES |
| title_full | ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIES |
| title_fullStr | ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIES |
| title_full_unstemmed | ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIES |
| title_short | ENDOGENOUS GROWTH MODEL: EVIDENCE FROM EAST EUROPEAN COUNTRIES |
| title_sort | endogenous growth model evidence from east european countries |
| topic | East European countries Fiscal Policy Public Expenditures Taxation Economic growth |
| url | http://er.ef.untz.ba/index.php/er/article/view/106 |
| work_keys_str_mv | AT mahirhrnjic endogenousgrowthmodelevidencefromeasteuropeancountries AT azrabrankovic endogenousgrowthmodelevidencefromeasteuropeancountries |