scholarly journals Does external debt as a new determinants of fiscal policy influence sustainable economic growth: implications after COVID-19

2022 ◽  
Author(s):  
Fengsheng Chien ◽  
Ka Yin Chau ◽  
Talla M. Aldeehani ◽  
Pham Quang Huy ◽  
Luc Phan Tan ◽  
...  
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
External Debt ◽  
Policy Influence ◽  
Sustainable Economic Growth

scholarly journals The Relationship Between External Debt, Economic Growth, Unemployment and National Expenditure in Viet Nam

2018 ◽  
Vol 1 (2) ◽  
pp. p129
Author(s):  
Anh Tru Nguyen
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
External Debt ◽  
Viet Nam ◽  
Credit Growth ◽  
Short Run ◽  
The Government ◽  
The Relationship ◽  
Macroeconomic Stability

The article examines the relationship between external debt, economic growth, unemployment and national expenditure in Viet Nam between 1987 and 2016. We found that the influence of a variable on other variables varies in the short run. We found that there are directional relationships between GDP and external debt and GDP and national expenditure. We also found that there are directional relationships between unemployment and external debt, GDP, and national expenditure. Results addressed directional relationships between national expenditure and external debt and GDP. There are two co-integrations among variables. In order to sustain macroeconomic stability in Viet Nam, fiscal policy should be re-examined to meet large development needs and monetary policy should be tightened to reduce credit growth. Specifically, external debt should be effectively managed by the government because an increase in external debt leads to a decrease in GDP and a growth of unemployment. Moreover, GDP should be facilitated to reduce unemployment in the economy. Lastly, unemployment needs to be controlled because it generates a boom of national expenditure and vice versa.

scholarly journals Growing discoordination between monetary and fiscal policies in Ukraine

2019 ◽  
Vol 14 (2) ◽  
pp. 40-49 ◽  
Author(s):  
Svitlana Mishchenko ◽  
Svitlana Naumenkova ◽  
Volodymyr Mishchenko ◽  
Viktor Ivanov ◽  
Roman Lysenko
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Interest Rate ◽  
Weighted Average ◽  
Fiscal Policies ◽  
Macroeconomic Indicators ◽  
High Volatility ◽  
Monetary And Fiscal Policy ◽  
Sustainable Economic Growth ◽  
The Impact

The slowdown in economic development caused by the reduction in the efficiency of the functioning of state institutions determined the focus of the governments of most countries of the world on achieving sustainable economic growth, as well as ensuring macroeconomic and macrofinancial stability. A major issue that is dealt with is the weakening of the interaction of monetary and fiscal policies in Ukraine. It can be assumed that one of the reasons hindering economic growth is growing discoordination between monetary and fiscal policies. The purpose of this study is to assess the nature of monetary and fiscal policies in Ukraine in 2000–2017 and justify the need for coordination between them to stimulate economic growth. For the quantitative assessment of the influence of monetary and fiscal factors on GDP, the models of autoregression with distributed lags – ARDL are used. The analysis makes it possible to distinguish and characterize three stages of combining the rigid and stimulating monetary and fiscal policy in Ukraine in 2000–2017. The article examines the influence of the dynamics of the monetary aggregate M3, the inflation rate and the weighted average base interest rate on the growth rates of real GDP in Ukraine, the impact of using the “monetary clamp” effect on the increase in the NBU’s interest rate, and the direct effect of monetary factors on the fiscal policy. The authors conclude that the inconsistency of monetary and fiscal policies is one of the reasons for the high volatility of macroeconomic indicators. The article substantiates the conclusion that it is necessary to overcome the increasing antagonism between monetary and fiscal policies in Ukraine and to strengthen their coordination.

scholarly journals The effectiveness of fiscal policy: contributions from institutions and external debts

2018 ◽  
Vol 25 (1) ◽  
pp. 50-66 ◽  
Author(s):  
Nguyen Phuc Canh
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Panel Data ◽  
Emerging Markets ◽  
Linear Relationship ◽  
External Debt ◽  
Content Type ◽  
Growth Effects ◽  
Non Linear ◽  
Debt Levels

Purpose The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. The purpose of this paper is to investigate the effects of fiscal policy on economic growth under contributions from the differences in institutions and external debt levels. Design/methodology/approach The authors use panel data from 2002 to 2014 from 20 emerging markets and use GMM estimators for unbalanced panel data. Findings The results show positive growth effects of fiscal policy across emerging markets in the examined periods. Notably, the improvement in institutions promotes higher crowding-in effects of fiscal policy. In addition, this paper finds interesting evidences that the external debt has non-linear effects on economic growth, whereas the heterogeneous effects of fiscal policy on economic growth as positive effects in low indebted level and negative effect in high indebted level may explain the mechanism of this non-linear relationship. Originality/value This study proposes the non-linear relationship of fiscal growth effects in emerging economies under the dynamic of debt levels.

scholarly journals FISCAL POLICY AND INSTITUTIONAL BUDGET ARCHITECTONICS

2020 ◽  
Vol 5 (5) ◽  
pp. 197
Author(s):  
Igor Chugunov ◽  
Valentina Makohon ◽  
Tetniana Krykun
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Fiscal Policy ◽  
Public Welfare ◽  
Human Potential ◽  
Socio Economic Development ◽  
Strategic Goals ◽  
Sustainable Economic Growth ◽  
Macroeconomic Stability

The purpose of the article is to study the role of fiscal policy in the context of the development of institutional budget architectonics aimed at ensuring macroeconomic stability, boosting economic growth, strengthening human potential, improving public welfare and defining approaches to its formation in advanced and transition economies. Comparative and factor methods make it possible to cover the peculiarities of institutional environment of the formation of fiscal policy in EU countries and Ukraine in the context of the development of the institutional budget architectonics and to identify ways for its improvement. Methodology. Substantiation of the role of fiscal policy in terms of the development of institutional budget architectonics, determination of its strategic orientations are based on generalization and systematization of experience of advanced and transition economies. For this very reason, the authors analyse and assess the fiscal policy and define special aspects of the formation and implementation of its components in relevant countries. Results show that to increase the effectiveness of the fiscal policy, it is expedient to ensure its interrelation with other components of financial policy based on a combination of fiscal and motivation function. Effective institutional budget architectonics provides means for creating conditions for sustainable economic growth, achieving strategic goals of socio-economic development of the country. Significant tasks of the development of institutional budget architectonics are regulation of the ratio between direct and indirect tax revenues, the structure of budget expenditures in terms of functional, economic classifications, maintaining the budget gap and public debt at the level that contributes to the financial and economic stability of the country, taking into account economic cyclical nature. Practical implications. A feasible budget architectonics would facilitate the maintenance of macroeconomic stability and accelerate economic growth. It is expedient to carry out institutional changes of budget architectonics on the ground of dynamic interconnection of budget and macroeconomic indicators. Value/originality. Fiscal policy plays a significant part in the process of government regulation of socio-economic development of the country. Elaboration of fiscal policy approaches in the context of the development of institutional budget architectonics is an important prerequisite for improving the quality of budget planning, ensuring the strength, stability and dynamic balance of the budget system. It is advantageous to introduce adaptive institutional changes into the budget architectonics in order to accelerate economic growth. Therefore, the article covers the essence and role of institutional budget architectonics aimed at ensuring macroeconomic stability, accelerating economic growth, developing human potential, improving public welfare; it defines the approaches to its development in transition and advanced economies. The authors establish that effective fiscal policy based on feasible institutional budget architectonics provides means for creating conditions for sustainable economic growth, achieving strategic goals of socio-economic development of the country.

scholarly journals Analyzing Fiscal Balance Evolution for Developed and Emerging Countries

2016 ◽  
Vol 63 (3) ◽  
pp. 299-310
Author(s):  
Gheorghita Dinca ◽  
Marius Sorin Dinca ◽  
Catalina Popione
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Current Account ◽  
Public Debt ◽  
Current Account Balance ◽  
Time Interval ◽  
Independent Variables ◽  
Sustainable Fiscal Policy ◽  
Fiscal Balance ◽  
Sustainable Economic Growth

The purpose of our paper is to analyze the main factors which influence fiscal balance’s evolution and thereby identify solutions for configuring a sustainable fiscal policy. We have selected as independent variables some of the main macroeconomic measures, respectively public debt, unemployment rate, economy openness degree, population, consumer goods’ price index, current account balance, direct foreign investments and economic growth rate. Our research method uses two econometric models applied on a sample of 22 countries, respectively 14 developed and 8 emergent. The first model is a multiple regression and studies the connection between the fiscal balance and selected independent variables, whereas the second one uses first order differences and introduces economic freedom as a dummy variable to catch the dynamic influences of selected measures upon fiscal result. The time interval considered was 1999-2013. The results generated using the two models revealed that public debt, current account balance and economic growth significantly influence the fiscal balance. As a consequence, the governments need to plan and implement a fiscal policy which resonates with economy priorities and the phase of the economic cycle, as well as ensure a proper management of the public debt, stimulate sustainable economic growth and employment.

scholarly journals Institutional environment of budgetary regulation of social development

2019 ◽  
pp. 196-204
Author(s):  
Serhii Sobchuk
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Fiscal Policy ◽  
Social Development ◽  
National Economy ◽  
Institutional Environment ◽  
The State ◽  
Financial Globalization ◽  
Budget Policy ◽  
Sustainable Economic Growth

Relevance of the research topic. The search for new sources of economic growth at the stage of post-crisis development of the national economy determines the need for the development and implementation of an effective budget policy, since the financial system dysfunctions generated by the trends of financial globalization negatively affect the economic environment of the country. The change in the type of economic growth constitutes the necessity of modifying the budget regulation towards its proactive changes, which include transparency, effective tax incentives and increased availability of financial resources by improving existing methods and methods for implementing fiscal policy and improving the quality of the institutional environment. Formulation of the problem. Budgetary regulation needs to take into account the optimal balance between elements of the budget system and characteristics of cyclic economic development. This indicates the appropriateness of forming an institutional environment of fiscal policy, which should be aimed at ensuring the sustainable development of the national economy, promoting economic competitiveness, ensuring financial stability, effective protection of the domestic market and export support, infrastructure modernization, ensuring environmental protection, optimizing social protection of the population. and increasing its level and targeting. Analysis of recent research and publications. The work of foreign and domestic scholars such as A. Mazaraki [1], L. Lisyak [2], D. North [3], V. Makogon [4], M. Pasichnogo [5], I. Chugunova [6], S. Blankart, A. Smith, J. M. Keynes, A. Gritsenko, I. Zapatrina, I. Lukyanenko, I. Lyutoha, V. Fedosova, S. Yurii and others, are devoted to studying the institutional principles of fiscal policy making in the country and to improve the system of budgetary regulation of social development. Selection of unexplored parts of the general problem. Institutional transformation of fiscal policy is an effective tool for increasing the level of interaction between all members of budget relations. It is necessary to strengthen their coordination in achieving the goals of social development in the process of performing functions and tasks, in accordance with the strategic goals of the domestic economy. Setting the task, the purpose of the study. The objective of the study is to characterize the institutional environment of the state budget policy. The purpose of the study is to reveal the theoretical and methodological foundations for the formation of the institutional environment of budgetary regulation of social development and to identify the directions of its improvement. Method or methodology for conducting research. The article uses a set of methods and approaches of scientific knowledge, among which it should be noted: systematic, structural, generalization and scientific abstraction. Presentation of the main material (results of work). The peculiarities of formation of the institutional environment of budget regulation of social development are determined. The directions of increasing the institutional interaction of the components of the budget system in the conditions of the transformation of the economy are singled out. The main elements of the budget architectonics are described to achieve a balanced and sustainable socio-economic development of the state. The field of application of results. Organization and conducting of scientific researches on formation of institutional principles of the budget policy of the country. Conclusions according to the article. In order to ensure sustainable economic growth, it is expedient to determine the basic principles of forming an institutional environment for budget regulation of social development, consisting of combining the components of the adaptive institutional architecture of the budgetary system and instruments of fiscal regulation, optimizing the structure of budget revenues and expenditures, the system of intergovernmental fiscal relations and medium-term budget planning, and forecasting on the basis of establishing the relationship between the trends of financial globalization and priorities state financial policy, taking into account the volatility of the economy and the lagged effects will promote sustainable economic growth.

scholarly journals Does Fiscal Policy Influence the Economic Growth? Evidence from OECD Countries

2021 ◽  
Vol 55 (2/2021) ◽  
pp. 229-246
Author(s):  
VINTILA GEORGETA ◽  
GHERGHINA STEFAN CRISTIAN ◽  
CHIRICU COSMINA STEFANIA
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Oecd Countries ◽  
Policy Influence

scholarly journals BUDGET DEFICITS, EXTERNAL DEBT AND ECONOMIC GROWTH IN NIGERIA

2010 ◽  
Vol 55 (03) ◽  
pp. 491-521 ◽  
Author(s):  
TOKUNBO SIMBOWALE OSINUBI ◽  
RISIKAT OLADOYIN S. DAUDA ◽  
OLADELE EMMANUEL OLALERU
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
External Debt ◽  
Nonlinear Effects ◽  
Econometric Analysis ◽  
Debt Ratio ◽  
Budget Deficits ◽  
Debt Overhang ◽  
Laffer Curve ◽  
External Borrowing

The necessity for governments to borrow in order to finance deficit budgets has led to the development of external debt. This study examines how the use of budget deficits as an instrument of stabilization leads to the accumulation of external debt with the attending effects on growth in Nigeria between 1970 and 2003. By synthesizing a relationship between budget deficits and external debt the study shows the implications on economic growth of conducting a fiscal policy within the contexts of debt stabilization and debt sustainability. The results of the econometric analysis confirm the existence of the debt Laffer curve and the nonlinear effects of external debt on growth in Nigeria. The study concludes that if debt-financed budget deficits are operated in order to stabilize the debt ratio at the optimum sustainable level debt overhang problems would be avoided and the benefits of external borrowing would be maximized.

Fiscal Policy in Association with Sustainable Economic Growth in the Period 2011-2020

2014 ◽  
Vol 220 ◽  
pp. 19-40
Author(s):  
MAI DINH LAM ◽  
BUI THI MAI HOAI ◽  
SU DINH THANH
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Sustainable Economic Growth

scholarly journals Fiscal Policy in Association with Sustainable Economic Growth in the Period 2011-2020

2014 ◽  
Vol 220 ◽  
pp. 19-40
Author(s):  
THÀNH SỬ ĐÌNH ◽  
Hoài Bùi Thị Mai ◽  
LÂM MAI ĐÌNH
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Fiscal Decentralization ◽  
Public Investment ◽  
Positive Effects ◽  
Long Run ◽  
Endogenous Growth Model ◽  
Fiscal Support ◽  
Sustainable Economic Growth ◽  
Difference Gmm

Employing endogenous growth model, panel data from 62 provinces and cities in 2000-2011 and PMG and Arellano-Bond difference GMM, the research analyzes empirically the relationship between the fiscal policy and economic growth in Vietnam. Its main findings are: (i) fiscal decentralization and economic growth cointegrate in the long run, but government’s efforts to adjust its fiscal policy during economic shocks that cause disequilibrium or make the economy deviate from its long-term trend produce very low effects; (ii) fiscal income decentralization and fiscal support have positive effects on economic growth while expenditure decentralization does not; (iii) current expenditure and spending on education, scientific research, health care and environmental issues produce positive effects on the economic growth while public investment fails to do so.

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