 Fiscal policy and economic growth: the case of AlbaniaGerti Shijaku () and Arlind Gjokuta MPRA Paper from University Library of Munich, Germany Abstract: This discussion material analysis the effects of fiscal policy on the economic growth in the case of a small open developing country, Albania, by employing an endogenous growth model on a GMM approach. The results obtained show that government revenue policies has a higher effect on economic growth than those on government expenditure. The impact of revenue and expenditure on growth were analysed by categorising tax revenue into distortionary and non-distortionary, whilst government expenditure were divided into productive and non-productive. Under such composition we found that revenue sub-categories reduce growth, while distortionary taxation has much larger and statistically significant effect. Besides, the parameter values show that growth is effected positively by productive expenditure and negatively by non-productive. Also, this paper analysis the impact of public debt on growth and finds that the size of public debt is negatively related to growth rate. Keywords: Fiscal policy; economic growth; public debt and GMM approach (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:79090 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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