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The Impact of Fiscal Policy on Economic Growth in the OECD Countries

Bibliographic Data

ID6108705
AuthorsAgata Drobiszová (VSB - Technical University of Ostrava), Zuzana Machová (0000-0002-3448-4600, VSB - Technical University of Ostrava)
Year2015
Volume63
Issue3
Pages300-316
Publication date2015-06-01
Open AccessYes
TypeARTICLE
VenuePolitická ekonomie (JOURNAL)
Journal identifiersISSN: 0032-3233 • E-ISSN: 2336-8225
PublisherPrague University of Economics and Business (PUBLISHER • CZ)
DOI10.18267/j.polek.1004
OpenAlexW2201851471
LanguageEN
Citations received3
References cited38

The aim of the paper is to fi nd out what is the effect of different types of government spending and taxes on economic growth in developed economies. The analysis is performed on a sample of 27 OECD countries in the period 1997-2011. It is based on the neoclassic growth model extended with the level of human capital and fi scal variables. Those include particular types of government spending (according to the COFOG classifi cation) and taxes (according to the OECD classifi cation), and state budget defi cit. From a methodological point of view, panel data estimation is used. We support the view that only some types of government spending are growth-enhancing, and only if they are fi nanced through indirect taxes. However, the results show that only expenditure on defense, education and health, and general public services may be labeled as productive. In addition, we show that direct taxes, especially corporate taxes, negatively affect the growth, also in case they are used to fi nance productive spending

Affect (linguistics) · Capital expenditure · Econometrics · Economic growth · Economics · Estimation · Fiscal policy · Government (linguistics) · Government Expenditure · Government spending · Human capital · Macroeconomics · Market economy · Monetary economics · Panel analysis · Panel data · Point (geometry) · Politics · Public economics · Public expenditure · Public finance · Public spending · Sample (material) · Economic Growth and Productivity · Finance · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth

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Citations per year0.3
Citation span2016 - 2016 (1)
Highly citedNo

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