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Fiscal Policy And Economic Growth In Romania

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  • Cosmin Enache

    (West University of Timisoara)

Abstract

The connection between fiscal policy and economic growth is not a strong one, takinginto account that fiscal policy is not a fundamental source of growth. Even so, governmentauthorities could use fiscal policy to affect in an indirect manner the economic growth. We will tryto highlight this indirect connection and its strength on Romania’s case using a specificeconometric methodology which takes into account the restrictions imposed by the government’sbudget constraint and we will identify the specific fiscal policy measures which could enhanceeconomic growth in Romania.

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Bibliographic Info

Article provided by Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia in its journal Annales Universitatis Apulensis Series Oeconomica.

Volume (Year): 1 (2009)
Issue (Month): 11 ()
Pages: 50

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Handle: RePEc:alu:journl:v:1:y:2009:i:11:p:50

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Keywords: fiscal policy; economic growth; government budget constraint;

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References

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  1. Johannes Fedderke & Željko Bogetic, 2005. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," Working Papers 39, Economic Research Southern Africa.
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  10. António Afonso & Juan Alegre, 2011. "Economic growth and budgetary components: a panel assessment for the EU," Empirical Economics, Springer, vol. 41(3), pages 703-723, December.
  11. Turnovsky, Stephen J, 1996. "Fiscal Policy, Adjustment Costs, and Endogenous Growth," Oxford Economic Papers, Oxford University Press, vol. 48(3), pages 361-81, July.
  12. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  13. Asea, Patrick & Mendoza, Enrique G & Milesi-Ferretti, Gian Maria, 1996. "On the Ineffectiveness of Tax Policy in Altering Long- Run Growth: Harberger's Superneutrality Conjecture," CEPR Discussion Papers 1378, C.E.P.R. Discussion Papers.
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Cited by:
  1. Mihai Ioan Mutascu & Dan Constantin Danuletiu, 2011. "Taxes And Economic Growth In Romania. A Var Approach," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(13), pages 10.

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