scholarly journals The Impact of Fiscal Decentralization on Economic Growth in Central and Eastern Europe

2020 ◽  
Vol 9 (3) ◽  
pp. 215
Author(s):  
Volodymyr Korotun ◽  
Tetiana Kaneva ◽  
Anton Drepin ◽  
Liudmyla Levaieva ◽  
Svitlana Kucherenko
Keyword(s):  
Economic Growth ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Fiscal Decentralization ◽  
Property Taxes ◽  
The Real Estate ◽  
Gdp Growth Rate ◽  
Tax Autonomy ◽  
Eastern European Countries ◽  
The Impact

In this research, we evaluated the impact of fiscal decentralization on GDP per capita growth. Using the unbalanced panel data, the authors assessed the interconnections between fiscal decentralization – considering its expenditure and revenue aspects as well as tax autonomy – and economic growth for Central and Eastern European countries from 1995 to 2018. In the examined states, the expenditure decentralization exceeded the revenue one. We found out that revenue decentralization and tax autonomy adversely affected economic growth. But expenditure decentralization associated with a positive GDP growth rate. In this paper, we also explored the peculiarities of fiscal decentralization reform. Structural transformations radically reduced the size of the public sector in Central and Eastern Europe, which had a positive effect on the economy. The vital components of local budgets tax revenues are personal income tax and the property taxes. The most effective mechanism for the property tax base’s determination arises from the value of the real estate or land. Keywords: fiscal policy, fiscal decentralization, tax autonomy, property taxes, economic growth

scholarly journals Formalization of the impact of imbalances in the movement of financial resources on economic growth of countries in Central and Eastern Europe

2017 ◽  
Vol 1 (1) ◽  
pp. 48-58 ◽  
Author(s):  
Serhiy Kozmenko ◽  
Maxim Korneyev
Keyword(s):  
Economic Growth ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Positive Impact ◽  
Financial Resources ◽  
Long Run ◽  
The Impact

The article deals with the impact of financialization on economic growth in countries of Central and Eastern Europe. It determinesthe impact of imbalances in the movement of financial resources caused by financialization on economic growth of these countries. It proves that the implementation of measures aimed at increasing the openness of the economy and maintaining solvent demand have a positive impact on economic growth of the surveyed countries in the long run. It also proves the importance of developing a set of measures of strategic nature regulating imbalances in the movement of financial resources caused by financialization.

scholarly journals ECONOMIC AND INSTITUTIONAL FUNDAMENTALS OF THE DIVERGENCE OF DEVELOPMENT PATHS IN CENTRAL AND EASTERN EUROPE

Ekonomika ◽  
2013 ◽  
Vol 92 (3) ◽  
pp. 24-40
Author(s):  
Yuriy Bilenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Eastern Europe ◽  
Transition Economy ◽  
Central And Eastern Europe ◽  
Development Economic ◽  
Financial Openness ◽  
Eastern European Countries ◽  
Development Paths ◽  
Sustainable Economic Growth

Abstract. An analysis of the divergence of economic development paths of Eastern European countries (Poland, Hungary, Latvia, Lithuania, Czech Republic, Slovakia, Slovenia) that joined the EU in 2004 and of the European post-Soviet states (Ukraine, Russia, Belarus, Moldova) for the past twenty years with an emphasis on trade and financial openness is carried out in the article. A detailed description of institutional mechanisms and institutional changes in the economies of these two groups of countries is presented. In my opinion, in order to ensure a sustainable economic development and sustainable economic growth, the macroeconomic equilibrium has to be supplemented by the institutional equilibrium. The equilibrium criteria have to match the actual functions of the institutions, assigned to them by society, and contribute to the development of the whole society along with formation of the middle class.Key words: economic development, economic growth, institutional change, transition economy, Central and Eastern Europe

Crisis in Eastern Europe: The Downside of a Market Economy Revealed?

2011 ◽  
Vol 19 (1) ◽  
pp. 31-41 ◽  
Author(s):  
Herman W. Hoen
Keyword(s):  
Financial Crisis ◽  
Eastern Europe ◽  
Market Economy ◽  
Global Economy ◽  
Central And Eastern Europe ◽  
The European Union ◽  
Capitalist System ◽  
Introductory Statement ◽  
Eastern European Countries ◽  
The Impact

After the collapse of communism, the Central and Eastern European countries decided to implement a market economy embedded in a democratic order. A constituent element of the transition was a fully-fledged integration with the global economy. One of the consequences of this integration is that the countries are now severely hit by the financial crisis. Until recently, however, it all looked flourishing and economic growth figures indicated a steady catch up with average welfare levels in the European Union (EU). On the website of the European Bank for Reconstruction and Development an essay competition was launched for those who were born in 1989. In an introductory statement, a Russian joke is quoted: ‘Everything the Communists told us about communism was a complete and utter lie. Unfortunately, everything the Communists told us about capitalism turned out to be true’.1 This article addresses the impact of the financial crisis in Central and Eastern Europe and in essence starts from this quote. It seeks to explain the extent to which the financial crisis in the Central and Eastern Europe question reveals the downside of a capitalist system embedded in a global economic order.

scholarly journals The Misunderstanding of China’s Investment, and a Clarification: “Faustian Bargain” or “Good Bargain”? On the OFDI Data of Central and Eastern Europe

2021 ◽  
Vol 13 (18) ◽  
pp. 10281
Author(s):  
Cheche Duan ◽  
Yicheng Zhou ◽  
Dehong Shen ◽  
Shengqiao Lin ◽  
Wei Gong ◽  
...  
Keyword(s):  
Eastern Europe ◽  
Global Governance ◽  
Central And Eastern Europe ◽  
Positive Contribution ◽  
The European Union ◽  
Host Countries ◽  
Economic Relations ◽  
Regulatory Quality ◽  
Eastern European Countries ◽  
The Impact

The close development of the economic relations between China and Central and Eastern Europe (CEE) since 2012 has triggered the European Union’s criticism of China’s foreign policy towards Eastern European countries. The European Union believes that China’s investment growth has led to a governance crisis in CEE countries. Based on the global governance indicators of the World Bank and the outward foreign direct investment (OFDI) data of the Ministry of Commerce of China, this paper conducts a test using the panel data model and the regression discontinuity method. An imbalanced panel dataset is adopted, covering 16 CEE countries from 2000 to 2018. The empirical research results indicate that, representing a small proportion of the investment inflows to CEE countries, China is not yet able to exert a domination effect on the region, and China’s economic power is far less than the European Union’s regulatory influence. Furthermore, China’s share of the OFDI in CEE has a U-shaped effect on the regulatory quality of host countries, and the two have a mutually causal relationship. Specifically, the impact on the host country’s regulatory quality is first manifested in the Shanghai effect, and when China’s share reaches a certain level, it is manifested in the California effect. The U-shaped effect is associated with the strategic factors of CEE countries and China’s positive contribution to good global governance.

scholarly journals The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

2018 ◽  
Vol 10 (1) ◽  
pp. 238 ◽  
Author(s):  
Calin-Adrian Comes ◽  
Elena Bunduchi ◽  
Valentina Vasile ◽  
Daniel Stefan
Keyword(s):  
Economic Growth ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Foreign Direct Investments ◽  
The Impact
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