The Impact of Public Finance Management on Sustainable Development and Competitiveness in EU Member States

Postuła, Marta; Raczkowski, Konrad

doi:10.7441/joc.2020.01.08

Cited by 16 publications

(7 citation statements)

References 37 publications

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“…Yet, in the short term, the general long-term trend regarding the use of fiscal policies on competitiveness is maintained (Gorynia et al, 2021). The results obtained by us are similar to those obtained by Çebi and Çulha (2014); Bouakez and Eyquem (2015); Cacciatore and Traum (2018); Haug et al (2019); Gomes et al (2020); Postula and Raczkowski (2020). In contrast, the causal link between the two variables (fiscal policy and competitiveness) shows that fiscal policies positively influence competitiveness for all countries, but the reverse is achieved only for the least developed countries among the eleven.…”

Section: Discussionsupporting

confidence: 87%

Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Ţigănaşu

Pascariu

Lupu

2022

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Research background: The transformations induced by global challenges call for new approaches towards competitiveness and thus require a consistent rethinking of strategies and mechanisms so that they could be better adapted to the constantly changing context. Prior to the European Union (EU) accession, the Central and Eastern European (CEE) states began a broad process of economic reforms, including trade liberalization, mass privatization, exchange rate liberalization, all of which led to a wider opening to new markets, the creation of new opportunities for production and to ensuring the competitiveness of companies on foreign markets. By far, the most important step in the post-communist period was joining the EU, achieved after 2004. Over time, these states have faced, on the one hand, issues related to addressing systemic vulnerabilities, and on the other hand, finding the most appropriate measures to induce competitiveness. The influence of public policies on competitiveness is still an issue that needs to be debated, our study proposing to examine the reaction of external competitiveness to the increase of government spending and corruption. Purpose of the article: The aim of this paper is to analyze the impact of fiscal policies and corruption on the external competitiveness of the eleven countries from Eastern Europe (Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) for the period 1995?2020. The choice of this time interval is to better capture the trinomial relationship between competitiveness, fiscal policy and corruption before and after the process of integration of the CEE states into the EU. Methods: The methodology chosen is based on ARDL (Autoregressive Distributed Lag) with structural breaks, the period taken into account being 1995?2020. The Unit root test of augmented Dickey?Fuller ADF (2016) was used to assess the time series stationarity. The test developed by Bai and Perron (2003) is applied to detect structural breaks, by resorting to the LM test. The tests for the cointegration between the considered variables, using the ARDL model, proposed by Pesaran et al. (2001), were also part of the research. The causality test of Granger et al. (2000) was used to assess the conditionality between the indicators. By applying these methods, it was highlighted that, especially after 2007, in the states under analysis, expansionary fiscal policies have led to internal devaluations of the currency, which ultimately increased external competitiveness, measured as real effective exchange rate. Instead, corruption has a negative impact on competitiveness. Findings & value added: The obtained results point out the relationship between competitiveness, fiscal policy and corruption in CEE countries. In the case of those that have a high competitiveness, even if there are large government expenditures, there is also an economic environment conducive to the implementation of measures that generate added value on a large scale. Conversely, in countries where corruption is high, the impact of government fiscal policies on competitiveness is reduced due to the negative effects caused by this phenomenon. Our study brings at least two contributions to the literature. First of all, the research shows how a growth in public spending affects the competitiveness of CEE economies through the real exchange rate. Secondly, it takes into account the phenomenon of corruption applied to Eastern countries, emphasizing a decrease in the external competitiveness of these economies in response to the manifestation of corruption.

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Section: Discussionsupporting

confidence: 87%

Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Ţigănaşu

Pascariu

Lupu

2022

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“…First, increasing the taxation scale of activities that lead to climate pollution forces the introduction of pro-ecological actions on a larger scale, and the society experiences their effects already in the following year. Kosonen (2012), Paultrel (2008), Postula and Raczkowski (2020) and Li et al. (2021) reached similar conclusions.…”

Section: Discussionsupporting

confidence: 59%

“…Identifying environmental factors and public policy tools aimed at improving both the quality of the climate and the health of the population would certainly help find the relationships between them (Dora, Phillips, & Phillips, 2000; Morris, Beck, Hanlon, & Robertson, 2006; Postula & Raczkowski, 2020). Morris (2010) indicates the term “ecological public health” in the same context as mentioned above, i.e.…”

Section: Introductionmentioning

confidence: 99%

Managing health through environmental policies. Analysis for European Union countries

Postula,

Kluza,

Zioło

et al. 2024

CEMJ

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PurposeEnvironmental degradation resulting from human activities may adversely affect human health in multiple ways. Until now, policies aimed at mitigating environmental problems such as climate change, environmental pollution and damage to biodiversity have failed to clearly identify and drive the potential benefits of these policies on health. The conducted study assesses and demonstrates how specific environmental policies and instruments influence perceived human health in order to ensure input for a data-driven decision process.Design/methodology/approachThe study was conducted for the 2004–2020 period in European Union (EU) countries with the use of dynamic panel data modeling. Verification of specific policies' impact on dependent variables allows to indicate this their effectiveness and importance. As a result of the computed dynamic panel data models, it has been confirmed that a number of significant and meaningful relationships between the self-perceived health index and environmental variables can be identified.FindingsThere is a strong positive impact of environmental taxation on the health index, and the strength of this relationship causes effects to be observed in the very short term, even the following year. In addition, the development of renewable energy sources (RES) and the elimination of fossil fuels from the energy mix exert positive, although milder, effects on health. The reduction of ammonia emissions from agriculture and reducing noise pollution are other health-supporting factors that have been shown to be statistically valid. Results allow to identify the most efficient policies in the analyzed area in order to introduce those with the best results or a mix of such measures.Originality/valueThe results of the authors' research clearly indicate the health benefits of measures primarily aimed at improving environmental factors, such as environmental taxes in general. The authors have also discovered an unexpected negative impact of an increase in the share of energy taxes in total taxes on the health index. The presented study opens several possibilities for further investigation, especially in the context of the rapidly changing geopolitical environment and global efforts to respond to environmental and health challenges. The authors believe that the outcome of the authors' study may provide new arguments to policymakers pursuing solutions that are not always easily acceptable by the public.

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“…Countries with better functioning banking and financial markets expand faster and are therefore more competitive (Zanella & Oyelere, 2021). Few studies investigated the impact of financial market development on economic growth as a strong indicator of competitiveness and found a positive relationship between the two (Jungo, Madaleno & Botelho, 2022;Postula & Raczkowski, 2020). According to the literature, financial development is assumed to have a positive impact on competitiveness.…”

Section: Foreign Direct Investment (Fdi)mentioning

confidence: 99%

Macroeconomic Determinants of Competitiveness: Evidences From Factor Efficiency and Innovation-Driven Countries

Khyareh

Rostami

2022

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The investigation of factors that increase or hinder competitiveness has been one of the core tenets of theoretical and empirical researchers, but so far there has been no consensus. This study responds to this issue by exploring how different facets of the macroeconomic environment influence competitiveness in the three Global Entrepreneurship Monitor (GEM) types of economy (factor-driven economy, efficiency-driven economy, innovation-driven economy). Using Porter’s classification, we divided countries based on factor, efficiency and innovation. Additionally, the generalized method of moments (GMM) was used to capture endogeneity and unobserved heterogeneity of data in an unbalanced panel data for 81 countries (2002-2018). The results show that the variations of competitiveness across countries are mainly determined by variations in the stage of economic development. Firstly, GDP growth, low start-up costs and higher R&D expenditure play a key role in explaining the variation in competitiveness in three country clusters. Secondly, as regards Stage 1 countries, we find that trade openness, tax rate, GDP growth, start-up costs, real effective exchange rate, R&D expenditures and labor productivity are particularly vital for competitiveness. Concerning Stage 2 countries, we may observe that trade openness, tax rate, GDP growth, inflation, start-up costs, financial development, real effective exchange rate, R&D expenditures and labor productivity had a statistically significant impact on competitiveness. When it comes to Stage 3 countries, factors such as trade openness, FDI, tax rate, GDP growth rate, inflation, tax rate, startup costs, financial development, R&D expenditures, and labor productivity have an impact on competitiveness. This article presents some essential features, such as the macroeconomic index to determine competitiveness. These features can be used as guidelines for decision makers because they identify areas where taking further actions can improve competitiveness. Finally, our obtained results are highly consistent across a series of robustness tests and robustness checks covering alternative samples and alternative variable groups.

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The Impact of Public Finance Management on Sustainable Development and Competitiveness in EU Member States

Cited by 16 publications

References 37 publications

Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Competitiveness, fiscal policy and corruption: evidence from Central and Eastern European countries

Managing health through environmental policies. Analysis for European Union countries

Macroeconomic Determinants of Competitiveness: Evidences From Factor Efficiency and Innovation-Driven Countries

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