Quality of Public Finance and Economic Growth in the Czech Republic
Irena Szarowská ()
No 30, Working Papers from Silesian University, School of Business Administration
Quality of public finances belongs to a key policy challenge as its improvement should lead to a long-term economic growth. The aim of the paper is to investigate if the key channels and tools used by the public finance (structure of revenue system, size of the government and composition of expenditure, level and sustainability of fiscal position) affect economic growth in the Czech Republic in the period 1995-2013. The empirical model is based on the methodology of Barro and Sala-i-Martin (2003) and the model of Mankiw et al. (1992) which is adapted to the framework of this study. The results of dynamic regressions suggest that economic growth is affected by public finance variables only partly and traditional sources of economic growth (human capital or openness) play bigger role. Provided evidence shows that total tax burden as well as the structure of revenue system (especially implicit tax rates on labour and consumption) should be primarily used as tools for maintain macroeconomic objectives. On the contrary, changes in size and composition of expenditure, balance and debt report not statistically significant impact.
Keywords: corporate income tax rates; global economy; tax competition; tax coordination and harmonization (search for similar items in EconPapers)
JEL-codes: E62 H20 H50 C51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.iivopf.cz/images/Working_papers/WPIEBRS2016/WPIEBRS_30_Szarowska.pdf First version, 2016 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:opa:wpaper:0030
Access Statistics for this paper
More papers in Working Papers from Silesian University, School of Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by David Jančar ().