Budget Policy and Economic Growth

Idrisov, Georgy; Sinelnikov-Murylev, Sergey

doi:10.2139/ssrn.2367933

Cited by 9 publications

(6 citation statements)

References 44 publications

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“…The other components of the budget expenditures are identified as non-productive. Their effect on the change of total factor productivity growth rate is insignificant (Idrisov & Sinelnikov-Murilev, 2013).…”

Section: The Main Results Of the Studymentioning

confidence: 99%

Empirical study of the fiscal policy impact on economic growth

Pasichnyi

2017

Problems and Perspectives in Management

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The challenges of economic globalization, recession, and the essential changes in market conditions, as well as the financial institutionalization, determine the expediency of the new studies to explore the impact of fiscal instruments on the dynamics of economic growth and social stability. This paper examines the role of fiscal policy in the economic growth ensuring in advanced and emerging market economies over the period from 2001 to 2015. The research indicates the growing role of the state (in general) and the budget (in particular) in regulation of social and economic processes. Based on the methods of economic regression, the interrelations between government spending and GDP growth in different groups of countries were evaluated. The study emphasized the directions to increase the positive influence of budget policy on economic development for countries with emerging market economies. This can be achieved by harmonization of the tax burden and structure, improving the use of budget funds, conducting structural optimization of budget expenditures, further development of financial and budget institutions, implementation of the fiscal constraints and rules while forming the basic indicators of fiscal policy.

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Section: The Main Results Of the Studymentioning

confidence: 99%

Empirical study of the fiscal policy impact on economic growth

Pasichnyi

2017

Problems and Perspectives in Management

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“…This statement concerned the issue of the budget spending increases as well. The prerequisites for ensuring a long-term economic growth included the quality improvement of the budget institutions, the structural optimization of public expenditures (in order to raise the human capital) as well as the information and transport infrastructures' development (Idrisov & Sinelnikov-Murilev, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Fiscal stimuli and consolidation in emerging market economies

Chugunov

Pasichnyi

2018

Investment Management and Financial Innovations

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The Great Recession has imposed vital limitations on the policy maker’s ability to react to further economic challenges. In this article, the authors set a purpose to assess the expediency and the size of fiscal consolidation or expansionary measures for countries with emerging markets depending on economic dynamics. The data on the episodes of large changes in fiscal policy, representing both fiscal stimuli and consolidation in Ukraine and in the EU countries with emerging market economies from 2001 to 2017, were evaluated. The authors examined the main reasons of fiscal policy’s volatility and its impact on economic growth. The countries with low and medium level of institutional framework for fiscal policy formulation could face permanent deficit and public debt problem. Episodes of expansionary fiscal adjustments based on government revenues cuts and spending increases were more effective compared with those that were entirely based on spending increases. Empirical investigation showed that successful fiscal consolidation measures obligatory included the government primary spending reduction. In those cases, the budget deficit-to-GDP and public debt-to-GDP ratios were declined. Medium-term priorities to develop the methodical bases of fiscal policy design were justified.

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“…In our case, however, we added the global oil price (expressed in USD), which is a fully exogenous variable both for government spending and GDP volume. This is the variable that largely accounted for GDP trends early in the 21st century (see: Drobyshevsky and Nazarov, 2012;Idrisov and Sinelnikov-Murylev, 2013) and is most likely to be independent from the Russian GDP and from any amount of government spending in Russia. The very approach to VAR estimation, as a means of estimating time sequences, requires an estimate of the correlation between relevant variables, with their own lagging values carrying the most explanatory power.…”

Section: Estimating Budget Spending Efficiency In Russiamentioning

confidence: 99%

“…Some papers (Idrisov and Sinelnikov-Murylev, 2013;Kudrin and Sokolov, 2017) analyze Russia's current fiscal policy and suggest ways to change the budget spending composition (budget maneuver). For example, Kudrin and Sokolov (2017) suggested specific measures for the budgetary stimulation of economic growth, allowing for a redistribution of expenditures in favor of productive sections: increasing educational expenditures by 0.9 p.p.…”

Section: Estimating the Budget Structure Change Effectmentioning

confidence: 99%

“…This level may differ significantly between developing and developed economies. From 2010 to 2017, Russia's total government spending was between 34% and 38% of GDP, a level above which, according to a number of economists (see Idrisov and Sinelnikov-Murylev, 2013), increased spending would fail to encourage economic growth under current institutional conditions.…”

Section: Introductionmentioning

confidence: 99%

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Russian budget structure efficiency: Empirical study

Kudrin¹,

Knobel²

2018

RUJEC

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This paper investigates the economic efficiency of Russian public expenditures in 2002–2016 by estimation of their multiplicative impact on the GDP level and economic growth. We use the empirical methodology based on Corsetti et al. (2012). We estimate a number of fiscal multipliers: on national security, law-enforcement activity, national defense, education, health care and sport and road infrastructure. For assessing the influence of budget structure on long-term economic growth rates, we estimate the SVAR model in which GDP growth is a structural variable. The research shows a positive influence of budgetary resources redistribution from non-productive government expenditures to productive ones on economic development.

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Budget Policy and Economic Growth

Cited by 9 publications

References 44 publications

Empirical study of the fiscal policy impact on economic growth

Empirical study of the fiscal policy impact on economic growth

Fiscal stimuli and consolidation in emerging market economies

Russian budget structure efficiency: Empirical study

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