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Influența deficitului bugetar asupra dezvoltării economice a României
[The impact of budget deficit on the economic development of Romania]

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  • Mesea, Oana Elena

Abstract

This paper empirically analyzes the impact of budget deficit on the economic development of Romania. Using the OLS estimates for quarterly series for the period from 2001 to 2011, the results of the estimates prove that there is an indirect relationship between budget deficit and economic growth of Romania. According to the best statistically significant model from the three different model tested, we reached the result that one percent rise of budget deficit gives a 1.36 percent fall in real GDP. This result sustains the neoclassical hypothesis and is against the Keynesist hypothesis or the Ricardian equivalence.

Suggested Citation

  • Mesea, Oana Elena, 2012. "Influența deficitului bugetar asupra dezvoltării economice a României [The impact of budget deficit on the economic development of Romania]," MPRA Paper 40476, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40476
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    References listed on IDEAS

    as
    1. Comaniciu, Carmen, 2006. "Considerations regarding the Romanian fiscal and budgetary reform in accordance with the E.U. requirements," MPRA Paper 3430, University Library of Munich, Germany.
    2. Laurence Ball & N. Gregory Mankiw, 1995. "What do budget deficits do?," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 95-119.
    3. Lutkepohl, Helmut, 1982. "Non-causality due to omitted variables," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 367-378, August.
    4. Eisner, Robert, 1989. "Budget Deficits: Rhetoric and Reality," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 73-93, Spring.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    budget deficit; economic growth; fiscal policy; Romania;
    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
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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