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Correlation Between Government and Economic Growth - Specific Features for 10 Nms

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  • Laura Obreja Braşoveanu

    (Bucharest University of Economic Studies)

Abstract

The impact of fiscal policy on economic growth is a complex and contradictory topic in finance debates. Government influences real economy through the impact of public revenues and expenditures on the quantity and quality of production factors, labor and capital. High taxation for supporting big public sector can impede growth. On the other hand, some of the public expenditures can stimulate growth. This opposite effects of the public sector’s intervention through fiscal policy rise the debate about the performance of public sector in stimulating economic growth. The aim of this paper is to analyze the differences between developed UE countries and former communist EU countries regarding the public sectors and economic growth.

Suggested Citation

  • Laura Obreja Braşoveanu, 2012. "Correlation Between Government and Economic Growth - Specific Features for 10 Nms," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(5), pages 1-14, October.
    • Handle: RePEc:spp:jkmeit:1325
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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