 FISCAL POLICY'S INFLUENCE ON ECONOMIC GROWTH IN THE EUROPEAN UNIONDiana Mihaiu Cindea and Alin Opreana Revista Economica, 2012, vol. 64.6, issue 6, 48-55 Abstract: In this paper we study the impact of the fiscal policy on the economic growth for European Union, for the period 2000-2009. This subject represents a very debated problem in the economic literature. Our findings shows that, from the analysis of correlation between economic growth rate and total rate of taxation, there is generally an inverse relationship, meaning that an increase in the tax rate adversely affects economic growth. Continuing the analysis of the correlation between economic growth rate and total tax rate components it can be seen that there is an inverse relationship between labor taxation and capital taxation and economic growth in EU Member States. Both labour and capital taxes are part of direct taxes, so we conclude that a rise in direct taxes will cause a reduction in real GDP growth rate. In contrast, between taxes on consumption and real GDP growth rate there is no significant correlation. Keywords: fiscal policy; economic growth; taxes on labour; taxes on capital; taxes on consumption. (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:blg:reveco:v:64.6:y:2012:i:6:p:48-55 Access Statistics for this article More articles in Revista Economica from Lucian Blaga University of Sibiu, Faculty of Economic Sciences Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No.17, postal code 550324, Sibiu, Romania. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.