scholarly journals Correlation between Government and Economic Growth –Fiscal Policy during the Transition in Albania

2013 ◽  
Vol 3 (2) ◽  
pp. 149
Author(s):  
MSc. Xhenet Syka ◽  
Dr.Sc. Ilir Kaduku
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Economic Status ◽  
Fiscal Sustainability ◽  
Government Expenditures ◽  
Theoretical Treatment ◽  
Current State ◽  
The Future ◽  
State Of The Economy

In this paper we tried to analyze some aspects of fiscal policy in our country, without pretending to give our own sample. Fiscal policy is the use of government expenditures and taxes which affect economic activity. Determination of fiscal policy in a given year takes into account the time virtually the past (current socio-economic status) and the implications for the future (fiscal sustainability).In general the cases dealt the role fiscal policy plays toward economic growth. The analysis many focused both in the theoretical treatment as well as the role that fiscal policy has played in our country, going even further in some suggestions for the future. The most important issue was addressed in the long-term fiscal policy view, fiscal sustainability. In the final everything is addressed to the role of fiscal policy on social issues.The role that fiscal policy should play in economic and social development has long been a controversial issue and is still different among economists. While a restrictive fiscal policy means increasing taxes and cut government spending. Fiscal policy may be expansionary or restrictive. An expansionary fiscal policy means a reduction of direct and indirect taxes and increased government expenditures. Choose between two types of fiscal policy is not an easy decision, both in terms of the current state of the economy, as well as political decisions.

scholarly journals Fiscal Policy And Economic Growth In PIIGS Countries: An Empirical Assessment

2013 ◽  
Vol 29 (5) ◽  
pp. 1343 ◽  
Author(s):  
Helmi Hamdi ◽  
Rashid Sbia
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Causal Relationship ◽  
Econometric Model ◽  
Government Expenditures ◽  
Empirical Results ◽  
Empirical Assessment ◽  
Bidirectional Relationship ◽  
Tax Hypothesis ◽  
Dynamic Relationships

This paper studies the dynamic relationships between government revenues, government expenditures and economic growth in Portugal, Italy, Ireland, Greece and Spain (PIIGS henceforth). To this end we use a multivariate econometric model based on the Toda-Yamamoto (1995) procedure. Our empirical results reveal a bidirectional relationship between government revenues and government expenditures in Portugal only. Greece is the only county in which government expenditures Granger cause government revenues. Therefore, there is no evidence for spend-and-tax hypothesis for three countries of our sample. For Italy there is a unique unidirectional relationship running from government revenues to GDP while a unique unidirectional relationship was found running from government revenues to government expenditures for Ireland. Results for Spain show a double bidirectional relationships running from government revenues to GDP and from government expenditures to GDP. Moreover, there exists a unidirectional causal relationship between government revenues and government expenditures. Again, there is no evidence for tax-and-spend hypothesis for three countries of our sample.

Empirical appraisal of fiscal stability: the case of Ghana

2015 ◽  
Vol 42 (5) ◽  
pp. 753-779
Author(s):  
Nana Kwame Akosah
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Central Bank ◽  
Public Debt ◽  
Inflation Targeting ◽  
Fiscal Sustainability ◽  
Content Type ◽  
Quarterly Data ◽  
Poor Countries

Purpose – The purpose of this paper is to appraise the stability of Ghana’s fiscal policy by assessing government’s reaction in the past to rising public debt over the last three decades. Design/methodology/approach – Using quarterly data spanning 1990Q1-2013Q2, the study evaluated the mean reverting properties of Ghana’s public debt and also estimate the fiscal policy reaction function. The complementary estimation techniques include Pesaran et al. (2001) bound testing cointegration test, differencing method and also Granger two-step cointegration methods. Findings – Using quarterly data from 1990Q1 to 2013Q2, the study found the fiscal policy to be unstable in the 1990s, necessitating the adoption of Heavily Indebted Poor Countries’ initiative in 2001. The fiscal situation however relatively stabilizes afterwards following the external debt relief in 2001. Nevertheless, the study reveals that the recent fiscal policy (since 2006) seems to be confronted with tremendous fiscal pressures, exacerbated by fiscal excesses during election cycles as well as excessive domestic and external borrowings. In addition, the economic growth-debt link was found to be weak, though debt appears to adversely affect economic growth. Research limitations/implications – The study does not thoroughly explore the possibility of non-linear relationship between public debt and primary balance. Also, the result could be different using different data frequencies. Practical implications – The state of government finance has implications on the monetary policy and economic growth prospects of an economy. As an inflation targeting central bank since 2002, a successful monetary policy implementation that reins in inflation requires fiscal policy that curtails fiscal volatilities originating from imprudent behaviour of government. Therefore, the looming fiscal pressures in recent times would impair the effective implementation of the inflation targeting framework by the central bank, and also retard economic growth as the bulk of these expenditures are usually recurrent in the case of Ghana. Originality/value – This is the first paper to employ complementary econometric techniques to empirically evaluate fiscal sustainability in Ghana.

Six Essays in Persuasion

2017 ◽  
Author(s):  
Thomas J. Sargent
Keyword(s):  
United States ◽  
Fiscal Policy ◽  
Inflation Rate ◽  
Government Debt ◽  
The United States ◽  
Budget Constraint ◽  
Government Expenditures ◽  
The Future ◽  
Monetary And Fiscal Policy ◽  
The U.S

This chapter consists of six essays that use “unpleasant monetarist arithmetic” to interpret events during the 1980s and 1990s in Brazil and the United States. During the 1980s, the United States took steps along a path upon which Brazil had travelled much further, a path along which interest-bearing government debt is growing as a percentage of GNP. The U.S. government was able readily to borrow large amounts, and had far to go before the government's budget constraint threatened to impose painful choices among the options of raising taxes, lowering government expenditures, or printing currency. Brazil found its ability to borrow very limited, and therefore had to confront those painful choices immediately. One essay emphasizes that a country's inflation rate at any moment emerges out of the sustained monetary and fiscal policy that it chooses, now and in the future.

scholarly journals The Effect of Government Expenditures on Economic Growth. the Case of Albania

2014 ◽  
Vol 2 (1) ◽  
pp. 242
Author(s):  
Lorena Çakerri ◽  
Migena Petanaj ◽  
Oltiana Muharremi
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Fiscal Policy ◽  
Government Spending ◽  
National Income ◽  
Policy Instruments ◽  
Government Expenditures ◽  
Global Crisis ◽  
The Government ◽  
The Impact

One of the main issues of economic policy and government is to ensure a sustainable economic growth of a country.Economic growth has been at the center of every government in place since at least year 2000.Though for this teen-year ,growth values were satisfactory in Albania, the macroeconomic situation changed in 2009,when appeared the elements of the global crisis. Economic global crisis has awakened interest in the case of fiscal policy.Fiscal policy and monetary policy as well, are two basci components of state economic policy which are used for macroeconomic purposes:influence of gross domestic product, the level of enmployment, income and price level. The two main instruments of fiscal policy are government expenditures and taxes. Government expenditures are considered as the most powerful weapon available to fiscal policy makers, especially in developing countries such as Albania. During the last century , governments have spent more and more in relation to their national income. This increase in government spending can be explained by the impact that this variable can have on the economic growth of a country? In fact ,about the connection between the government spending and the economic growth of a country various studies seem full of contradictions.This conflict is explained by changes in terms of definitions and from the differencies of the various countries included in these studies. The objective of this study is to give an appropriate answer to the question : Can government spending have the potential to impact and stimulate economic growth? How the changes of the size of the fiscal policy instruments have affected indicators of economic growth in Albania? This article will focus on the role that the fiscal policy has on economic growth , especially in our country, reviewing economic growth theories, debates about the effectiveness of fiscal policy , and active fiscal policy. Finally some suggestions for the future addressing the government expenditures towards priority sectors.

scholarly journals Inequality in China – Trends, Drivers and Policy Remedies

2018 ◽  
Vol 18 (127) ◽  
Author(s):  
Sonali Jain-Chandra ◽  
Niny Khor ◽  
Rui Mano ◽  
Johanna Schauer ◽  
Philippe Wingender ◽  
...  
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Income Inequality ◽  
Structural Changes ◽  
Policy Reforms ◽  
Policy Initiatives ◽  
The Past ◽  
Rapid Economic Growth ◽  
The World ◽  
The Future

China has experienced rapid economic growth over the past two decades and is on the brink of eradicating poverty. However, income inequality increased sharply from the early 1980s and rendered China among the most unequal countries in the world. This trend has started to reverse as China has experienced a modest decline in inequality since 2008. This paper identifies various drivers behind these trends – including structural changes such as urbanization and aging and, more recently, policy initiatives to combat it. It finds that policies will need to play an important role in curbing inequality in the future, as projected structural trends will put further strain on equity considerations. In particular, fiscal policy reforms have the potential to enhance inclusiveness and equity, both on the tax and expenditure side.

scholarly journals Fiscal Sustainability And Fiscal Reaction Functions In The US And UK

2012 ◽  
Vol 11 (8) ◽  
pp. 935 ◽  
Author(s):  
Philippe Burger
Keyword(s):  
Fiscal Policy ◽  
Economic Crisis ◽  
Public Debt ◽  
Fiscal Sustainability ◽  
Smooth Transition ◽  
The Public ◽  
Reaction Functions ◽  
The Us ◽  
The Future ◽  
The Uk

Following the 2008/9 financial and economic crisis, public debt/GDP ratios in several countries rose to their highest levels in 40 years. Also in the US and the UK did the public debt/GDP ratios increase significantly, thereby putting the spotlight again on fiscal sustainability. Based on past behaviour, this article asks whether fiscal policy in these two countries is likely to be sustainable. The article investigates how the US and UK governments, by changing their deficits, react to changes in their debt positions. To do this, the article estimates fiscal reaction functions using Smooth Transition Regressions. It finds that based on past behaviour, fiscal policy in both the US and UK can be expected to remain sustainable. Based on the same past behaviour, and assuming this behaviour will continue in the future, the article also calculates the levels to which the public debt/GDP ratios in the US and UK can be expected to converge.

scholarly journals Fiscal Policy Tools and Economic Growth in Jordan: Evidence from Time-Series Models

2018 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Mohamed Ibrahim Mugableh
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Developing Economies ◽  
Negative Impact ◽  
Positive Impact ◽  
Policy Instruments ◽  
Government Expenditures ◽  
Policy Tools ◽  
Long Run ◽  
General Government

This paper examines equilibrium relationships and dynamic causality analyses between economic growth and fiscal policy tools in Jordan for the (1978-2017) period. It employs autoregressive distributed lag and vector error correction models. The results suggest that there is evidence of a co-integration and causal relationships between economic growth and fiscal policy instruments. General government expenditures have long-run positive impact on economic growth, implying that general government expenditures improve economic growth. Moreover, total tax rates have long-run negative impact on economic growth, implying that a tax cut stimulates economic growth. These results are broadly consistent with similar studies carried out for other developing economies. 

Functional nanomaterials based immunological detection of aflatoxin B1: a review

2020 ◽  
Vol 13 (2) ◽  
pp. 151-162
Author(s):  
Y.-H. Zha ◽  
Y. Zhou
Keyword(s):  
Food Safety ◽  
Future Development ◽  
Aflatoxin B1 ◽  
Cost Effective ◽  
Functional Nanomaterials ◽  
Current State ◽  
Immunological Detection ◽  
The Future ◽  
Aflatoxin B

Aflatoxin B1 (AFB1) is highly carcinogenic, mutagenic and teratogenic. Accordingly, sensitive, rapid and cost-effective techniques for detection of AFB1 is in urgent demand for food safety and the health of consumers. In this review, we report the current state of immunoassay formats and development, mainly based on nanomaterials for determination of AFB1. Following an introduction of the field, the microplate-, membrane- and microelectrode-based immunoassays are described. The relevant mechanisms, sensitivities, superiorities and deficiencies of each format are discussed. Finally, perspectives on the future development of nanomaterials-based immunoassays for AFB1 are provided.

scholarly journals Current methods of the enterprise’s creditability assessment

2019 ◽  
pp. 31-35
Author(s):  
Nadiia SOLOVEI ◽  
Larysa TUROVA ◽  
Yuliia PYROZHENKO
Keyword(s):  
Financial Institution ◽  
Research Problem ◽  
National Currency ◽  
Economic Literature ◽  
Loan Repayment ◽  
Financial Condition ◽  
Current State ◽  
State Of The Economy ◽  
Industry Affiliation

The article is devoted to the interpretation, analysis and systematization of the methods of credit assessment of enterprises. Taking into account the current state of the economy of Ukraine, as well as the financial state of most domestic enterprises, a considerable number of non-performing loans, Ukrainian banks are trying to develop, refine and improve the process of lending to customers. The number of non-performing loans in banks' portfolios indicates that banks do not cooperate with enterprises. Today, the issue of loan repayment is very painful: unstable economic situation, declining corporate incomes, devaluation of the national currency are among the main reasons for the large number of non-performing loans. In today's context, loans cannot be provided solely on the basis of trust, the lender must have other guarantees of repayment of own funds. Therefore, any financial institution examines the borrower for creditworthiness (evaluates its ability to repay debt on time). During the writing of the article, the authors noted that the problem is the determination of quantitative standards for comparison in the analysis, because there is no single clear value of the indicators. That is why it is impossible to single out the indicator, which is due to industry affiliation, and the standards given in the economic literature, the desired values of financial ratios, do not contain industry specifics and the specifics of the enterprise. The research problem is determined by the fact that there is no unified regulatory framework for a real assessment of the financial condition of the borrowing enterprise, and accordingly, there are no comparative indicators that are minimally acceptable for a particular industry in question.

scholarly journals KAJIAN DAMPAK PERUBAHAN ASUMSI DASAR EKONOMI MAKRO TERHADAP SENSITIVITAS PEMBAYARAN BUNGA UTANG

2018 ◽  
Vol 2 (2) ◽  
pp. 14
Author(s):  
Heru Wibowo ◽  
Wido Lukasanto ◽  
Pujiastuti Pujiastuti ◽  
Hardaning Tyas Widito
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Fiscal Sustainability ◽  
Interest Payment ◽  
State Budget ◽  
Us Dollar ◽  
The Government ◽  
The Impact

The state budget has strategic roles due to its capability in setting fiscal policy, the amount of the government’s budget and national fiscal capacity, as well as maintaining fiscal sustainability, and enhancing accountability of the government. This study is aimed to analyze the impact of the change of basic macroeconomic assumptions towards the sensitivity of interest payment expenditure. By employing regression analysis, some conclusions can be drawn as follows: (1) the raise of 3 month SPN interest rates and the depreciation of Indonesian Rupiah to US Dollar lead to an increase of interest payment, (2) the raise of economic growth leads to a decrease of interest payment, (3) by employing a trend analysis, it can be concluded that the increase of domestic interest payment is predicted to grow more rapidly and dominate the portion of interest payment than foreign interest payment is. Abstrak Terkait dengan politik anggaran, Anggaran Pendapatan dan Belanja Negara (APBN) menduduki posisi strategis, karena memuat gambaran kebijakan fiskal dan besarnya anggaran, kemampuan keuangan negara, menjaga kesinambungan fiskal, dan meningkatkan akuntabilitas pemerintah. Kajian ini dimaksudkan untuk menganalisis dampak perubahan asumsi dasar ekonomi makro terhadap sensitivitas pembayaran bunga utang. Hasil kajian dengan menggunakan analisis regresi menyimpulkan bahwa (1) peningkatan tingkat suku bunga SPN 3 bulan dan pelemahan nilai tukar rupiah terhadap dolar AS dapat berdampak pada peningkatan pembayaran bunga utang, (2) peningkatan pertumbuhan ekonomi berdampak pada penurunan pembayaran bunga utang. Melalui analisis tren didapati kesimpulan bahwa kenaikan bunga utang dalam negeri diperkirakan tumbuh lebih cepat dan mendominasi pembayaran bunga utang jika dibandingkan dengan bunga utang luar negeri.

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