FİSKAL SİYASƏT VƏ İQTİSADİ ARTIM: NƏZƏRİ VƏ EMPİRİK TƏDQİQATLARIN İCMALI
FISCAL POLICY AND ECONOMIC GROWTH: A REVIEW OF THEORETICAL AND EMPIRICAL RESEARCH

Summary/Abstract: Although the role of fiscal policy in the economic regulation from short-term and longterm perspectives and the impact of the taxes and government spending on the country's economic growth has been studied by economists for many years, no unequivocal result could be reached, and this topic continues to be the subject of active discussion. In Azerbaijan, there are many research papers that examine the relationship between fiscal policy, taxation government spending and economic growth. This article provides information on the results of research conducted in Azerbaijan and recommends new approaches by comparing it with research conducted in other countries. During the review of researches on the subject, according to research conducted on Azerbaijan a positive relationship was found between real government spending and real non-oil GDP in the long term. In line with other studies around the world, it is recommended that government’s share in GDP should be included to empirical models with or instead of real government spending. Additional recommendation is adding governance indicators to empirical models. Also, since there is no agreement in the literature review on the relationship between real government expenditures and real non-oil GDP in the short term, further research on this topic is recommended.

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