THE IMPACT OF FISCAL POLICY ON ECONOMIC GROWTH IN THE FOUNDING COUNTRIES OF THE EUROPEAN UNION

BOLDEANU Florin Teodor, Lucian Blaga University of Sibiu, Romania

ION Madalin-Sebastian, Lucian Blaga University of Sibiu, Romania

Abstract:
Changes in fiscal policy have an impact on aggregate demand, the allocation of resources and income distribution. The present study highlights the impact of fiscal policy on the founding countries of the European Union in the period 2000-2011. The evolution of GDP / capita was explained using the structure of tax revenues, inflation, budget deficit and also qualitative variables like the economic crisis and weather conditions. The results of the analysis indicate that fiscal policy has a significant negative impact on the founding countries of the European Union, in particular through measures taken in respect of value added tax, excise duties, income taxes for households and corporations and quotas on contributions. The budget deficit has no significant influence on economic growth in these developed countries.

Keywords: fiscal policy, economic growth, budget deficit, tax revenues

JEL Classification:

Volume: 67, Issue: Supplement

Pages: 207 - 217

Publication date: September, 2015

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/suplimente/67S20boldeanu&ion.pdf

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