Fiscal policy and economic growth: the case of Southeast European Countries

Abstract

This paper analyses the effects of fiscal policy on the economic growth of emerging developing countries such as Southeast European countries. The discussion related to fiscal policy impacts on economic growth is quite current, as the development of appropriate fiscal instruments can lead to continued and sustainable economic growth of these countries. The method I used in this paper is the Panel data model, namely Pooled OLS, Fixed Effects, Random Effects and Hausman Taylor-IV, to assess the impact of fiscal policy on economic growth. The variables used in this paper are: GDP - economic growth, tax revenue and government spending. The impact of income and expenditure on economic growth was analysed with data from 1994 to 2015.