Globalization, FDI and the Links with Economic Growth: An Empirical Investigation for MENA Countries

The Linkage Between Fiscal Policy and Financial Development: Exploring the Moderating Role of Institutional Quality in Emerging Economies

“…During the recent global economic crisis, when governments intervened to stabilize financial institutions, spur growth, and lessen the crisis's effects on vulnerable individuals, the function and goals of fiscal policy rose to prominence (see Adelowokan, 2021;Skott, 2021) in influencing various macroeconomic indicators. The research includes the connection between fiscal policy and growth (Matallah & Matallah, 2017;Nabieu et al, 2021;Ubi-Abai & Ekere, 2018), the financial market (Akitoby & Stratmann, 2008;Dumičić, 2019;Marfatia et al, 2020;Tagkalakis, 2011), and the environment (Akbar et al, 2021;Kamal et al, 2021;Katircioglu & Katircioglu, 2018;Yuelan et al, 2019). Studies have also looked into the relationship between several other variables and fiscal policy.…”

“…The effect of more public sector expenditure or tax cuts on aggregate demand may be offset by lower private-sector investment and consumption, especially when levels of public debt are already high (Tavani & Zamparelli, 2017). Numerous OECD country studies have demonstrated that when the level of public debt is large and unsustainable, decreasing fiscal deficits can spur economic growth (Matallah & Matallah, 2017). Interest rates are often lowered because of less government borrowing to fund deficit spending, which promotes investment.…”

“…Short-term fiscal policies are typically designed to stabilize economic activity. Fiscal policy is often a beneficial aspect of economic cycles (Matallah & Matallah, 2017). For instance, given gaps in aggregate demand, government spending is required to bolster real economic activity or to distribute resources to those who are less fortunate (Sindani, 2020).…”