scholarly journals The Impact Of Macroeconomic Factors In Economic Growth

2016 ◽  
Vol 12 (7) ◽  
pp. 331 ◽  
Author(s):  
Alush Kryeziu
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Public Debt ◽  
Budget Deficit ◽  
Econometric Model ◽  
Macroeconomic Factors ◽  
The Public ◽  
Time Period ◽  
Macroeconomic Indicators ◽  
The Impact

In this paper will be discussed the main concepts and trends of the macro-fiscal indicators in economic growth, as well as their importance in the economic development of different countries, with special emphasis in Kosovo. One of the aims of this paper is to define and explain the connection between macroeconomic indicators with specific emphasis: the public debt, budget deficit and inflation on economic growth. In order to analyze this impact of variables in economic growth, the targeted time period of research is the period from 2004 to 2014. While the data taken regarding Kosovo were obtained from the year 2005, due to the fact that earlier the data have been limited because of the developments in which Kosovo went through. The model that best represents the link between macro-fiscal indicators on economic growth is the linear regression as an econometric model. We will have the opportunity to see and interpret these data. The overall results have emerged in accordance with theoretical discussions presented, but this relationship has not turned out to be very strong because the coefficients acquired did not have great explanatory skills for economic phenomena.

scholarly journals THE IMPACT OF STATE DEBT ON THE COUNTRY FINANCIAL SECURITY

2020 ◽  
pp. 65-76
Author(s):  
В. А. Джрагацпанян ◽  
Є. Г. Постикіна
Keyword(s):  
Public Debt ◽  
Budget Deficit ◽  
Inflation Rate ◽  
Economic Security ◽  
Financial Security ◽  
Budget Deficits ◽  
The Public ◽  
Macroeconomic Indicators ◽  
Practical Model ◽  
The Impact

The article discusses the theoretical and practical aspects of ensuring the financial security of Ukraine, highlights the main macroeconomic indicators that determine the level of economic security. The public debt and its impact on economic security are analyzed. A practical model has been developed – the effect of GDP, inflation and budget deficits on public debt. Statistical factors are considered to give the main factors (GDP, inflation rate, budget deficit and public debt) that determine the current level of financial security and understanding of the level of their influence.

scholarly journals Public Debt and Economic Growth in the European Union. Empirical Investigation

2021 ◽  
Vol 18 ◽  
pp. 199-208
Author(s):  
Piotr Misztal
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Economic Development ◽  
Public Debt ◽  
Budget Deficit ◽  
Negative Impact ◽  
Foreign Debt ◽  
Budget Deficits ◽  
The European Union ◽  
The Impact

The relatively high sizes of public debts in many of the world's member states have led to frequentdebates concerning the influence of public debt on economic growth. Analyzing economic literature it can beseen, that theoretical and empirical considerations on this topic are divided into three main parties. The firstpart of analyzes is the work of the Keynesians, which emphasizes that the budget deficit as well as the publicdebt positively affects the economic development of the country, mainly through the impact of the budgetexpenditure multiplier. The opposite view on budget deficits and public debt is represented by the neoclassicalschool, who argue that the budget deficit and public debt can have negative impact on economic growth.Conversely, proponents of the Ricardian equivalence concept believe that budget deficits and public debt areneutral for economic growth. These three mentioned above approaches to the budget deficit and public debtproblem have led to many debates at home and abroad about the importance of budget deficit and public debt inthe process of economic growth and economic development of the country. The main objective of the study isto determine the impact of the foreign debt and home debt on economic activity of the country, based on theexample of the 27 member countries of the European Union (without United Kingdom) in the period 2006-2017. The statistics came from the European Statistical Office (Eurostat) and International Monetary Funddatabase (World Economic Outlook).

IMPACT OF GOVERNMENT DEBT ON FINANCIAL SECURITY OF UKRAINE

2017 ◽  
Author(s):  
Olena Pikaliuk ◽  
◽  
Dmitry Kovalenko ◽  
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Positive Impact ◽  
The State ◽  
Financial Security ◽  
State Budget ◽  
The Public ◽  
Debt Security ◽  
The Stability ◽  
The Impact

One of the main criteria for economic development is the size of the public debt and its dynamics. The article considers the impact of public debt on the financial security of Ukraine. The views of scientists on the essence of public debt and financial security of the state are substantiated. An analysis of the dynamics and structure of public debt of Ukraine for 2014-2019. It is proved that one of the main criteria for economic development is the size of public debt and its dynamics. State budget deficit, attracting and using loans to cover it have led to the formation and significant growth of public debt in Ukraine. The volume of public debt indicates an increase in the debt security of the state, which is a component of financial security. Therefore, the issue of the impact of public debt on the financial security of Ukraine is becoming increasingly relevant. The constant growth and large amounts of debt make it necessary to study it, which will have a positive impact on economic processes that will ensure the stability of the financial system and enhance its security.

Estimated impact of COVID-19 on the Jordanian economy

2021 ◽  
Vol 5 (3) ◽  
pp. 34-41
Author(s):  
Jameel Aljaloudi
Keyword(s):  
Economic Growth ◽  
Unemployment Rate ◽  
Public Debt ◽  
Budget Deficit ◽  
International Institutions ◽  
Economic Downturn ◽  
International Labor Organization ◽  
Negative Effects ◽  
Poverty And Inequality ◽  
The Impact

This study aims to estimate the negative effects of COVID-19 on the Jordanian economy. These effects are expected to coincide with the results of studies carried out by international institutions. For example, the International Labor Organization (ILO) estimated indicate an increase in the number of unemployed to 5.3 million (the “low” scenario) and 24.7 million (the “high” scenario), from a baseline of 188 million in 2019 (ILO, 2020a). Experts from the World Bank and the International Monetary Fund (IMF) confirmed that the global economic downturn (caused by the coronavirus pandemic) is the largest in the past eight decades, which will lead to an increase in poverty and inequality and harm economic growth in the long term. (News 18, 2020). To measure the impact of COVID-19 on the Jordanian economy, the following indicators were adopted: an economic growth, an unemployment rate, a foreign trade (imports and exports), public revenues, public spending, a public debt, and a budget deficit. The study relied on data contained in reports issued by international institutions and official institutions in Jordan. The results indicate a slowdown in the rate of economic growth, an increase in the unemployment rate, a decrease in exports and imports, an increase in the public debt and the budget deficit

scholarly journals The impact of budget deficit on inflation an econometric approach for the period 1994 – 2012

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Ardit Gjeci ◽  
Juljan Hysa
Keyword(s):  
Money Supply ◽  
Budget Deficit ◽  
Econometric Model ◽  
Extended Model ◽  
Main Hypothesis ◽  
Inflation Model ◽  
Macroeconomic Indicators ◽  
Econometric Approach ◽  
The Impact ◽  
Positive Results

The aim of research is to define and explain a relation between macroeconomic indicators such as the budget deficit and inflation. Under consideration is taken the period between 1994 – 2012, a period which has had an intensity and greater attention by the internationals in terms of performance of the economy. The paper studies these indicators mainly through econometric model, by considering indicators a function of each other. Main hypothesis of this research is: “If we increase the budget deficit and money supply, the rate of inflation is expected to increase." Based on the inflation model only in relation with money supply, it results a positive results, this only for the money supply with a dynamic delay of 1. The opposite dynamic results without delay. In the extended model of inflation, its connection with the budget deficit, not only comes out as negative, but the level of determination for this relationship is very low. This has no theoretical consistency and, most importantly, is a very unclear link between these two indicators.

scholarly journals Evolution of Public Debt in Albania during 1990-2017 and its impact on the Economic Growth

2020 ◽  
Vol 4 (1) ◽  
pp. 59
Author(s):  
Amarda Cano
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Cost Of Debt ◽  
Specific Level ◽  
The Public ◽  
Macroeconomic Indicators ◽  
Level Of Economic Development ◽  
Second Tier ◽  
The Cost ◽  
The Empirical Analysis

Public debt is one of the most important macroeconomic indicators due to its impact on the economy of each country. Literature suggests that the effect varies in each country depending on the level of economic development and situation. Public debt will have a direct impact on a country's economic growth, but there are contrasting opinions amongst economists regarding the use of public debt, particularly in situations of distress and in developing countries. Albania is a country that would be in need of a decrease of the debt/GDP ratio. This can be done through a stimulation of the economy rather than a decrease of the public debt. The empirical analysis shows that the increase on real public debt can negatively influence the GDP, yet, we do not observe a specific level above which the effects worsened. Instead, we notie that whenever the public debt was increasing, the cost of debt would sometimes decrease because the governments substitutes the debt borrowed from second tier banks with debt borrowed from the IMF.

scholarly journals Fiscal policy and economic development

2020 ◽  
pp. 153-164
Author(s):  
Mykola Pasichnyi
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Fiscal Policy ◽  
Budget Deficit ◽  
Weight Ratio ◽  
Policy Formation ◽  
Gdp Growth ◽  
Fiscal Consolidation ◽  
Real Gdp ◽  
The Impact

The research subject includes the theoretical basis and mechanisms of fiscal policy formation and realization as an instrument of economic development regulation. The aim of the study is to improve the theoretical and methodological basis of fiscal policy formation and determine the peculiarities of its impact on economic development. Methods. In order to achieve the appropriate tasks, we used a set of methods and approaches, that helped to ensure the conceptual unity of our investigation. The dialectical, systemic and structural approaches, methods of analysis and synthesis, comparison, generalization,economic and mathematical modeling, scientific abstraction are applied. Results. In this paper, we explored the main instruments of fiscal policy, which affect economic development. The experience of advanced counties in fiscal consolidation and stimulus measures during the Great Recession was systemized. Also, the author investigated the budget deficit impact on real GDP growth in OECD countries over the 1981-2017 period. Practical implications. Fiscal policy and instruments of its implementation. Conclusions. The regulation of the tax burden on labor and capital influences the conjuncture of these factors in the market. Fiscal regulation is one of the determining reasons for the migration of labor and financial capital between different regions and countries. Given the multiplicity of combinations of tax bases and rates, the government has significant potential to impact on investment and consumer demand, and real GDP growth. The impact of budget expenditures on aggregate demand should be examined considering the level (ratio to GDP) and different composition structures. It is vital to raise the weight ratio of productive expenditures in the overall structure, which leads to foster economic growth. Particularly important are the special productive expenditures that are directed towards the development of human capital; which include expenditures on education, health care, physical development, R&D. It is crucial to establish a consistent relationship between public spending and the obtained results to form an effective fiscal policy. The budget should be balanced, which requires the implementation of systematic fiscal consolidation measures, and it has been found that the growth of the budget deficit slows down economic growth. The priority of fiscal policy is to reduce the debt burden.

EFFECTS OF A PUBLIC DEBT AND DEFICIT BUDGET

2018 ◽  
Vol 8 (2) ◽  
pp. 140-144
Author(s):  
Daniel Szybowski
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Budget Deficit ◽  
Foreign Capital ◽  
The State ◽  
Financial Policy ◽  
Foreign Investments ◽  
State Budget ◽  
The Public ◽  
High Level

The aim of the article is to present a problem concerning the effects of the public debt and the budget deficit. The public debt is a result of the lack of adequate income earned by the financial sector, what means that it must incur liabilities to be able to carry out its tasks or improper management of the state budget funds - what results in the budget deficit. The size of the state's debt and the public debt has a very large impact on the socio-economic situa-tion of the country as well as on its financial policy. Due to the high indebtedness of the state, the whole economy is disturbed, the state authorities are not able to allocate an adequate amount of the funds to stimulate invest-ments. Such actions slow down the dynamics of economic development, what means that the state authorities most often look for savings. Unfortunately, this usually happens at the expense of the ordinary(?) citizens. Countries that have a high level of the debts tend to lose their credibility internationally. This may result in the fall in the foreign investments and the outflow of the foreign capital.

scholarly journals The Impact of Public Debt in Economic Growth

2020 ◽  
Vol 9 (4) ◽  
pp. 177
Author(s):  
Ariana Xhemajli Selimaj ◽  
Bedri Statovci ◽  
Alma Shehu Lokaj ◽  
Ermira Beqiri
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Public Debt ◽  
Financial Stability ◽  
Positive Impact ◽  
Debt Management ◽  
Public Expenditures ◽  
Economic Growth Rate ◽  
The Impact

Different countries around the world, in addition to collecting public revenues as sources to cover public expenditures, also need other sources of funding, because frequently, most countries cannot generate sufficient budgetary revenue to afford all the budget expenditures. This is one of the reasons why public debt is created. There is always debate among economists as to what the optimal percentage of public debt should be so as not to impede the economic development of a country. To avoid impediments to economic development, then public debt management needs to be done properly so that it is earmarked for adequate projects that will contribute to economic growth and development. In this paper, we will analyse the impact of public debt on economic growth. Kosovo serves as our case study for the period 2009-2016, where remittances, exports, increase of average payments and subsidies were considered as other influencing factors. The prudent use of public debt, such as in various investments, job creation, and productivity growth, can all contribute to economic growth and financial stability. Otherwise, misuse of public debt will inadvertently affect the country’s destabilization, create an inflationary situation, and will only continue to increase liabilities to lenders – essentially, it will have no positive impact on the country. Reckless use of public debt will have a direct effect on lowering the economic growth rate.

The impact of budget deficit, public debt and education expenditures on economic growth in Poland

2021 ◽  
Vol 71 (1) ◽  
pp. 59-84
Author(s):  
Michał Konopczyński
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Public Debt ◽  
Budget Deficit ◽  
Growth Path ◽  
Rapid Improvement ◽  
Balanced Growth ◽  
Education Expenditures ◽  
Balanced Growth Path ◽  
The Impact

AbstractThis paper investigates the relationship between economic growth in Poland and a few metrics of fiscal policy: budget deficit relative to GDP, the structure of public debt, education expenditures, and public consumption. We prove that with constant values of parameters of fiscal policy, over time the economy converges to the balanced growth path which is unique and globally asymptotically stable.Having calibrated the model with statistical data, we demonstrate that in the period of 2000–2016 economic growth in Poland was driven primarily by rapid improvement in the level of human capital (at a rate of 5.4% per annum), and secondarily due to the accumulation of capital (2.7% annually). If recent trends in fiscal policy are continued, the Polish economy will converge to the balanced growth path with GDP growing at 3.7%. This rate may be boosted, if fiscal policy is appropriately adjusted, for example by permanent reduction in budget deficit. We also analyse the effects of changes in the financing structure of public debt. Finally, we present several scenarios of increasing public and private spending on education.

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