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PUBLIC EXPENDITURES IMPACT ON ECONOMIC GROWTH: EVIDENCES FOR ROMANIA

Bogdan Zugravu and Anca-Stefania Sava

Revista Economica, 2012, vol. Supplement, issue 4, 665-671

Abstract: The aim of this paper is to discuss the Romanian public expenditures impact on economic growth from both a theoretical and an empirical point of view. Firstly, we present a brief literature review on the effects of public expenditures policy to economic growth. The second section continues with the methodology that we used in order to estimate the impact of public expenditures, according to their economic structure, to economic growth for the period 1995-2011. According to the results obtained, for interests and gross capital formation was found a negative correlation with gross domestic product, while the other categories of expenditures contributed in different proportions to economic growth.

Date: 2012
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