THE ASSESSMENT OF FISCAL DEFICIT ON ECONOMIC GROWTH IN TRANSITION COUNTRIES OF SOUTH-EASTERN EUROPE
THE ASSESSMENT OF FISCAL DEFICIT ON ECONOMIC GROWTH IN TRANSITION COUNTRIES OF SOUTH-EASTERN EUROPE
Author(s): Luljeta Gllogjani, Driton BalajSubject(s): Politics / Political Sciences, Politics, Economy, National Economy, Supranational / Global Economy, Business Economy / Management, Micro-Economics, Political Theory, Political Sciences, Civil Society, Governance, Economic policy, Government/Political systems, Welfare systems, Developing nations, Political economy, Politics and society, Comparative politics, EU-Accession / EU-DEvelopment, Financial Markets, Public Finances, Fiscal Politics / Budgeting, Accounting - Business Administration, Marketing / Advertising, Human Resources in Economy, ICT Information and Communications Technologies, Socio-Economic Research, Corruption - Transparency - Anti-Corruption
Published by: Institute for Research and European Studies - Bitola
Keywords: Economic Growth; Fiscal Deficit; Panel Data; Fixed-Effects; Dynamic Linear Regression
Summary/Abstract: The overall aim of this research is to observe the impact of fiscal deficit on economic growth in the transition economies of South-eastern Europe. The fixed-effects and dynamic linear regression were used to carry out this revision. The data used in this revision are quantitative data annually and cover the period 2005–2019. The outcomes detect that there is a confident and statistically important effect among the fiscal deficit and economic growth for the transition economies of Southeast Europe, supporting the Keynesian theory. Furthermore, the outcomes of this research show that public debt to GDP, foreign direct investment in GDP, exports, and imports in GDP have an important effect on economic growth. Findings have shown that public debt and imports have a positive influence on economic growth, unlike exports and foreign direct investment, which showed an adverse effect on economic growth. Moreover, for other additional factors, the inflation rate, the employment rate, and the real interest rate, the results of the study do not show any significant consequences on economic growth. The research also contributes in the macroeconomic aspect to the opening of discussions among the relevant stakeholders, including those coming from the policy-making area.
Journal: Journal of Liberty and International Affairs
- Issue Year: 7/2021
- Issue No: 3
- Page Range: 102-117
- Page Count: 16
- Language: English