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How Can Romanian Government Boost Economic Growth?

Author

Listed:
  • Campeanu Emilia

    (Bucharest Academy of Economic Studies, Faculty of Finance, Insurance, Banking, and Stock Exchange)

  • Gyorgy Attila

    (Bucharest Academy of Economic Studies, Faculty of Finance, Insurance, Banking, and Stock Exchange)

Abstract

Restoring economic growth is a challenge for the Romanian government that have to apply fiscal and budgetary measures in order to restore the positive path of the GDP without deteriorating the public finances sustainability. Therefore, it is necessary to identify based on historic data the impact of fiscal and budgetary policy on economic growth. The aim of this study is to analyze the effects of fiscal and budgetary policies on economic growth based on Romania case. The results are useful for identifying the instruments to boost the economy and propagation mechanisms of their effects on growth. Therefore, the economic growth is sustained by governmental measures involving increases for taxes on production and imports and cut for current taxes on income and wealth. Meanwhile, compensation of employees, subsidies and interest have significant statistical effects on growth.

Suggested Citation

  • Campeanu Emilia & Gyorgy Attila, 2012. "How Can Romanian Government Boost Economic Growth?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 436-442, December.
    • Handle: RePEc:ora:journl:v:1:y:2012:i:2:p:436-442
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    File URL: http://anale.steconomiceuoradea.ro/volume/2012/n2/063.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    fiscal policy; budgetary policy; growth;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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