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The Implications of Public Expenditures and Debt Accumulation for Economic Recovery in Romania

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  • Sava Anca-Stefania
  • Dobranschi Marian

    ()
    (Ph.D. student, Faculty of Economics and Business Administration, Department of Business Administration, “Alexandru Ioan Cuza” University, Iasi, Romania)

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    Abstract

    The aim of this paper is to address the implications of using public expenditures and debt accumulation to enhance the Romanian economic recovery and support the economic development and growth on the long run. Firstly, we have presented a brief introduction that reviews the literature on the role of using public expenditures in times of economic downturn and theirs effects. Secondly, the paper presents, in a critical manner, according to the economic and functional classification, which categories of expenditures were financed by the government in 2009, compared with the previous two years, as a result of the stand-by agreement contracted by Romanian government with the international financial institutions. In the last part, we have presented two of the most important effects of public debt accumulation in Romania: the crowding-out effect and the intergenerational equity.

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    File URL: http://stec.univ-ovidius.ro/html/anale/RO/cuprins%20rezumate/rezumatemai2010.pdf
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    Bibliographic Info

    Article provided by Ovidius University of Constantza, Faculty of Economic Sciences in its journal Ovidius University Annals, Economic Sciences Series.

    Volume (Year): X (2010)
    Issue (Month): 1 (May)
    Pages: 1845-1850

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    Handle: RePEc:ovi:oviste:v:10:y:2010:i:1:p:1845-1850

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    Web page: http://www.univ-ovidius.ro/facultatea-de-stiinte-economice
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    Related research

    Keywords: public expenditure; debt accumulation; crowding-out effect.;

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