Fiscal policy and growth in a small emerging economy
The case of Bulgaria
Bibliographic Data
| ID | 12846307 |
|---|---|
| Authors | Desislava Stoilova (0000-0001-6034-4225, South-West University "Neofit Rilski", corresponding author), Nikolay Patonov (0000-0003-3277-1005, South-West University "Neofit Rilski") |
| Year | 2020 |
| Volume | 42 |
| Issue | 4 |
| Pages | 386-402 |
| Publication date | 2020-09-05 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Society and Economy (JOURNAL) |
| Journal identifiers | ISSN: 1588-970X • E-ISSN: 1588-9726 |
| Publisher | Akadémiai Kiadó (PUBLISHER • HU) |
| DOI | 10.1556/204.2020.00015 |
| OpenAlex | W3083353584 |
| Language | EN |
| Citations received | 2 |
| References cited | 8 |
The purpose of this article is to study the impact of fiscal policy on economic growth in Bulgaria for the period 1995–2018. The descriptive analysis is focused on the general trends in fiscal policy and tax structure. The influence of government spending and taxation on economic growth is studied through regressions on time-series data. The empirical estimates prove that taxation is a more reliable instrument of fiscal policy than government spending in terms of a small open emerging-market economy. The dilution of the effect of public spending is probably caused by the high negative values of the current account balance that have been maintained for long periods. Thus, when domestic supply is weak, government expenditure cannot stimulate domestic production, as supply is dominated by import goods. Public investments demonstrate a negative effect on economic growth, which suggests a low productivity of investment spending. A factor of great importance is the level of corruption, which is strongly correlated with government investments, but is harmful to their efficiency. The Bulgarian tax system demonstrates consistency with economic growth. The receipts from value-added tax seems growth-conductive. The decrease of the corporate income tax rate exerts a positive impact on economc performance during the analyzed period, while personal income taxation demonstrates a negative effect. Property taxation has no significant relation with the growth of the Bulgarian economy
Economic policy · Economics · Fiscal policy · Government spending · Investment (military · Macroeconomics · Market economy · Monetary economics · Politics · Economic Growth and Productivity · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth
Tax structure and economic growth
Fiscal policy and growth
The composition of public expenditure and economic growth
Governance regimes, corruption and growth
Government Spending, Corruption and Economic Growth
Tax Structure and Growth
Government Spending in a Simple Model of Endogeneous Growth
Tax Policy for Economic Recovery and Growth
| Unique citing works | 2 |
|---|---|
| Citations per year | 0,4 |
| Citation span | 2021 - 2022 (2) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |