Fiscal impacts on output in a small open economy: the case of Albania Cover Image

Fiscal impacts on output in a small open economy: the case of Albania
Fiscal impacts on output in a small open economy: the case of Albania

Author(s): Nikolay Patonov
Subject(s): National Economy, Governance, Economic development, Fiscal Politics / Budgeting
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: tax revenues; government spending; economic growth; small open economy;

Summary/Abstract: The paper is intended to study the effects of total government spending and tax revenue on the annual GDP growth rate in Albania. On this base, we can examine whether and to which extent the macroeconomic governance could rely on those fiscal instruments in terms of a small open economy. The empirical methodology is based on regression analysis which includes OLS estimation on simply specified regression model and Vector Autoregressive estimates. The results support the assumptions that government expenditure is a weak instrument for policy impacts and the government must rely on taxation to stimulate economic growth.

  • Issue Year: 63/2016
  • Issue No: 2
  • Page Range: 161-169
  • Page Count: 9
  • Language: English