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Redistribution, Growth and Productivity Relationship in Fiscal Policy in Core and Peripheral Countries

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Listed:
  • Hakki Hakan Yilmaz

    (Ankara University)

  • Ali Sertaç Kanaci

    (Ankara University)

Abstract

The main purpose of this study is to analyze the impact of fscal policies on growth and productivity by dynamic panel data analysis in core and periphery countries. The results of the analysis differed for the core and periphery countries, it was observed that the effect of public expenditures and revenues had a different impact on growth and productivity. Study found that public expenditure and revenues had negative relations on growth performance for both groups. It is considered that government budget policies should be improved on the basis of a more responsive and inclusive way. Regarding to the labor productivity, increasing government expenditures promotes labor productivity in core countries, while it does not in the periphery countries. The impact of inequality on growth and productivity is not found statistically signifcant in two country groups. Main conclusion is that fscal policy plays a more active role in the growth and productivity.

Suggested Citation

  • Hakki Hakan Yilmaz & Ali Sertaç Kanaci, 2021. "Redistribution, Growth and Productivity Relationship in Fiscal Policy in Core and Peripheral Countries," Hacienda Pública Española / Review of Public Economics, IEF, vol. 238(3), pages 61-79, September.
    • Handle: RePEc:hpe:journl:y:2021:v:238:i:3:p:61-79
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    More about this item

    Keywords

    Income distribution; Fiscal policy; Growth; Productivity;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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