Influence Of Fiscal Policy Research Articles

Fiscal policy, interest rate and the manufacturing sector performance in Nigeria

In this paper, the influence of fiscal policy (government expenditure and taxation) and interest rate on the manufacturing sector of the Nigerian economy was explored for the period 1981 to 2021. The study utilized the autoregressive distributed lag (ARDL) model approach since some of our variables were integrated at level and others at first difference, and the bounds test reporting the existence of long run relationship in the model. Findings of the study indicated that in the short run, government expenditure and its one-period lag exerted a negative and significant influence on manufacturing sector performance; value added tax exerted a positive and significant effect on manufacturing sector performance while its one-period lag exerted a negative and significant effect; and interest rate exerted a positive and significant effect on manufacturing sector performance. In the long run, government expenditure put forth a negative but insignificant effect on manufacturing sector performance; while value added tax and interest rate exert positive and significant effect. In the disaggregated model, recurrent expenditure exerts a negative and significant effect; capital expenditure exerted a positive and significant effect; value added tax exerted a negative and significant effect; and interest rate put forth a positive and significant influence on manufacturing sector performance. The study recommended that there is need for a reduction in the cost of governance as a huge proportion of public spending is used in running the government other than being utilized in stirring critical sectors that could stir manufacturing sector performance.

The The Influence of Fiscal Policy, Monetary Policy and International Trade on Economic Growth in Indonesia (Literature Reviews)

The Literature Review article on the Influence of Fiscal Policy, Monetary Policy and International Trade on Economic Growth in Indonesia is a scientific article that aims to build a research hypothesis on the influence of variables to be used in further research, within the scope of public finance science. The way of writing this Literature Review article is the library research method, which is sourced from online media such as Google Scholar, Mendeley and other academic online media. The outcomes of this literature review study are: 1) Fiscal Policy influences Economic Growth in Indonesia; 2) Monetary Policy affects Economic Growth in Indonesia; and 3) International Trade has an effect on Economic Growth in Indonesia.

The Influence of Fiscal Policy and Monetary Policy on Economic Growth in Indonesia

The purpose of this study is to investigate how changes in fiscal policy and monetary policy have impacted economic expansion in Indonesia. Spending by the government, tax rates, the rate at which banks open new accounts, and the total amount of money in circulation are the variables that were investigated in this study. This study takes a quantitative approach, and the analytical method that is employed is multiple linear regression using secondary data on economic growth from 2013-2022. The data for this study was collected from the United States Department of Commerce. The study's conclusions indicate that taxes and the amount of money in circulation impact Indonesia's economic growth, but neither government spending nor interest rates on BI deposits do. Additionally, how government expenditure, taxes, interest rates, and the amount of money in circulation affect economic growth. It is 99.66%. As a result, while making future decisions about the economy, the government will need to take into account both kinds of policies in a comprehensive manner.

Research on the Influence of Fiscal Policy on Enterprise Value

Expansionary fiscal policy is an important means for many countries to cope with economic crisis and promote economic development in recent years. The expansion of fiscal policy may lead to the increase of government debt and the expansion of money supply, which will lead to inflation and economic imbalance, and will also have an impact on enterprise value. By selecting A-share listed companies in Shanghai and Shenzhen stock markets from 2013 to 2021 as samples, this paper explores the influence of expansionary fiscal policy on enterprise value and the intermediary role of financing constraints. The research results show that expansionary fiscal policy has a negative impact on enterprise value, and through analyzing the impact of expansionary fiscal policy on enterprise value by alleviating the financing constraints of enterprises, the influence mechanism of fiscal policy on enterprise value is discussed. At the same time, it is found that compared with state-owned enterprises, the expansionary fiscal policies of non-state-owned enterprises will have a more significant impact on enterprise value. This paper is helpful for enterprise decision makers to adjust their financial strategies and business strategies according to this conclusion to avoid potential risks, and also provides reference value for the government to formulate fiscal policies.

FISCAL POLICY AND EMPLOYMENT GENERATION IN NIGERIA

<p>This paper investigated the influence of fiscal policy on employment generation in Nigeria. The analyzed data, spanning 1981 to 2020 were obtained from the statistical bulletin of Nigeria’s apex bank and the country’s Bureau of Statistics. The Error Correction Model was applied as the main analytical tool. The results showed that aggregate government expenditure has a positive but insignificant influence on the employment rate. In addition, total tax revenue and external debt service have negative and insignificant influences on the employment rate in Nigeria. What this suggests is that fiscal policy tools of aggregate government expenditure, total tax revenue and external debt service have not effectively helped to increase the level of employment in Nigeria. Generating from the findings, this paper suggested that government should maintain fiscal prudence and ensure that total tax revenue is efficiently and effectively utilized to provide infrastructural facilities and social amenities that will help the various sectors of the economy to function very well thereby generating enough employment in the country.</p><p><strong>JEL:</strong> O15; E24; J21; H60</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0954/a.php" alt="Hit counter" /></p>

Empirical Analysis of the Effect of Fiscal Policy Shocks in China

Abstract The central issues concerning fiscal policy makers include macroeconomic stability and growth stimulation. The policy decision process is facilitated by investigation on the effects of fiscal policy, such as a change in government spending or taxes on macroeconomic variables comprising inflation, aggregate output, and interest rates. Build on the Blanchard-Perotti identification approach, this paper empirically analyses the influence of fiscal policy to aggregate economic activities in China, and the estimated results are compared between China and the advanced economies. The findings demonstrate that the impulse responses incurred by tax shocks are generally stimulative, although government spending shocks tend to be neutral, revealing meaningful implications for the fiscal space and policy design.

The Influence of Fiscal Policy on Foreign Direct Investment Inflow: A Case Study of Ireland

The level of influence from fiscal policy on foreign direct investment inflow (FDI) is controversial. This study investigates the relationship between foreign direct investments and corporate tax rates relative to other determinants within the European Union compared to Ireland. In this study, a panel regression analysis was employed to evaluate data from the United Nations Conference on Trade and Development (UNCTAD), World Bank and Organization for Economic Co-operation and Development (OECD) from 1990-2017. The result shows that there is a positive correlation between corporate tax rate, labor force, and foreign direct investment inflow in Ireland. Also, the corporate tax rate, inflation rate and Labor force rate have a significant impact on the FDI inflow in the economy growth of the Ireland. The understanding of the behavior of these factors can provide useful information to the Ireland government and policy makers as they seek to improve foreign direct investment inflow through building more infrastructure, increased market share, education quality and reformation in tax policy to encourage domestic investment and attract new investors to the Nation. The study recommends that firms seek financial gain through corporate tax rates as a leading determinant and aim to identify how corporate tax rates contrast in FDI levels between countries within the EU should acknowledge that other factors that can create a healthy business environment for sustainable growth for both in the investing MNEs and host nations. Keywords: Foreign Direct Investment (FDI), Corporate Tax, Inflation, Labor Force rate, Trade Openness. DOI: 10.7176/RJFA/12-2-04 Publication date: January 31 st 2021

Balance between Budget and Fiscal Policy: Empirical Evidence in South Sumatra Province

Introduction. Current budget balance is one problem encountered by the government which aims are to make a country/region prosperous, fiscal policy is one of the government’s efforts to regulate budget balance. In the case of balance budget and personnel expenditure, many governments have not been able to implement fiscal policies properly so that budget imbalances often occur. This research was conducted to determine how the balance of the budget and its relationship with fiscal policy in South Sumatra Province cause in each district/city has a unique area so that inequality often occurs. The data used in this study are secondary data from the Central Bureau of Statistics and the Directorate General of Taxes and Finance. The data analysis method which was seduced was panel data regression. The results of this study are expected to be a reference material for further research and government considerations in planning budget expenditures in South Sumatra Province. Purpose. This study analyzes fiscal expenditure which includes balance funds and personnel expenditure and economic growth in budget balance in South Sumatra Province in 2009 – 2018. Results. The results of this study indicate that (1) the balance funds and personnel expenditure have a positive effect on budget imbalances in the Regency/City of South Sumatra Province, but the effect of the balance funds is not significant, (2) economic growth has a negative and significant effect on budget imbalances in South Sumatra Province. Conclusion. Based on the regression results of the balance fund variable, personnel expenditure and economic growth are the determining variables for the balance of the budget in South Sumatra Province because it is seen from the R Square value of 72.8 percent and the greatest influence of fiscal policy in determining the balance of a budget is personnel expenditure. The implications of the research results can be a strategy to regulate the balance of the budget in each district/city South Sumatra Province. In addition, by regulating sound fiscal policy by the government, we hope it can reduce the budget deficit and create budget balance.

Influence of fiscal policy on GDP: an empirical study of GCC countries

The Gulf Cooperation Council (GCC) countries of late have made considerable attempts to achieve financial consolidation. However, this was limited to cuts in government expenditures. While scholars suggest the need for overall fiscal policy adjustments, countries should pay particular attention to efficient revenue generation and public debt management. In this paper, an attempt has been made to examine public finance of the GCC countries. The study has taken into account four significant components of public finance: public revenue, inflation, government expenditure and public debt. The co-integration rank test using the vector auto-regression method is employed to determine whether the chosen variables play any influential role in the GDP of the GCC economies. The results suggest that the effect of the consumer price inflation, total government revenue, revenue (percent of non-oil), and total government gross debt have a strong influence on the GDP of these economies. Thus, this means that the countries in the GCC region should focus on inflation, revenue, and public debt to have robust, viable and comprehensive development.

РОЗВИТОК ЕКОНОМІКИ УКРАЇНИ НА ОСНОВІ ПРИНЦИПУ РІВНОПРАВНОСТІ ВІДНОСИН ДЕРЖАВИ, БІЗНЕСУ ТА СУСПІЛЬСТВА

The article analyzes the main trends of Ukraine's development, identifies the key causes of the failed transformational processes of the national economy. It is determined that negative development tends to be caused by the imbalance and inefficiency of the existing system of public administration, the implementation of inconsistent reforms that are of a sectoral nature, inconsistency of structural priorities aimed at solving current problems, corrupting the distribution of capital, focusing political, economic and corporate power in "one hand" and lead to economic decline of the country, impoverishment of the population, growth of social tension.The necessity of transition to the model of economic development, which is based on the principle of equality of state, business, society, is proved. The separation of the political interests of the state and the economic interests of the country, the achievement of economic justice in the relations between the state and the business community will enable the formation of an economic policy aimed at satisfying national interests, developing socially responsible business, and ensuring social security of the population. Effective management of the process of coordination of interests and coordination of the state, business, society as the main institutions of a market economy provides for taking into account new trends in development and achievement of certain strategic and tactical tasks of the country.Economic development of the country is proposed on the basis of the symbiosis of institutionalized and non-market methods of meeting the needs of society. The basic directions of development of the country's economy are defined, which include: development of the industrial complex through the formation of industrial parks, clusters; development of agro-industrial complex; development of the IT sector; development of small and medium business; development of social entrepreneurship.One of the main instruments of economic development of the country is the investment environment, which is formed under the influence of fiscal policy, regulation of the financial services market and interaction of the financial and real sectors of the economy.

The Impact of Electronic Banking on the Profitability of Banks: A Case Study of Banks in Ghana

This study investigated the influence of fiscal policy on entrepreneurial growth in Nigeria with the adoption of survey research design which is based on the use of primary source of data involving the use of questionnaires of selected four hundred (400) entrepreneurs in the Lagos state of Nigeria derived from Yaro Yamani's sample size formula. This study employed multiple regression analysis and it was established that fiscal policy ensured the growth of entrepreneurship in Nigeria. This is evidenced in the regression result, R square=.116, which stipulates that about 12% variation in the entrepreneurial growth in Nigeria can be attributed to the combined effect of all the exogenous variables used in this study, while the remaining 88.4% can be attributed to other factors not covered in the study's model.Though this low explanatory power but the result of the regression estimates of model indicated that the coefficient of all the endogenous variables shows both positive and negative evidence from multiple regression analysis, which shows that taxation and public debt has a positive effect on entrepreneurial growth in Nigeria while tax incentives and public/government expenditure has a negative effect on the entrepreneurial growth in Nigeria. This study recommends that tax incentives should be used with care by the government as though may motivate people to create new businesses and to have taxes holidays until such a time when they will be buoyant to do so but reduces government revenue in the short-run. Governments at all levels are also advised to consider taxation which is one of the major tools of fiscal policy, as a veritable tool for financing government expenditure which will in turn aid entrepreneurship growth in Nigeria.

The influence of fiscal policy on income inequality in European Union’s member states

Poor growth performance over the past decades in Europe has increased concerns for rising income discrepancies and social exclusion. European authorities have recently launched the Europe 2020 strategy which aims to improve social inclusion in Europe on top of already existing European regional policies aiming to reduce regional disparities through stimulating growth in areas where incomes are relatively low. While it is most common to confine measures of inequality to national borders, the existence of such union-wide objectives and policies motivates measuring income dispersion among all Europeans in this paper. Fiscal policy is a powerful tool that changes the distribution of income in either direction, up or down. In this context, the present paper reviews the evolution of income inequality in EU member countries and figures out how fiscal policy (direct taxes) has influenced these outcomes. The paper also examines the contributions of both tax and expenditure policies in reducing income inequality in the EU, highlighting fiscal policy’s impact in different EU member countries.

Trends in Income Distribution and the Influence of Fiscal Policy

Since the fiscal reforms from the mid 90’s, the fiscal policy is less re-distributive. The generosity of the social benefits and the progressivity in taxes is less each time, especially in developed economies. The objectives have moved towards fiscal balance, the dispersion of the risks caused by the volatility of exchange rates and the macroeconomic stability. In brief: the “fiscal consolidation”, understood as the pursuit of budget equilibrium through the reduction of the tax elusion and evasion; the reduction of public expenditure destined to social welfare; preference for the use of indirect taxes and the focalization of the programs to fight poverty. Consensus establishes that fiscal policy is the main instrument to improve income distribution; however, few are the works that focus on the evaluation of how such policy can also generate greater inequality in the distribution of income and wealth. New trends in fiscal policy favoring concentration of income and wealth, the neoliberal emphasis on rational economic behavior promotes the pursuit of fiscal balance, financial stability and low inflation at the expense of social welfare and well-being. The purpose of this paper is to show how fiscal policy has diminished its redistributive effects.

A Multivariable System Approach for the Assessment of the Influence of Fiscal Policy to Business Cycle Shocks

The authors consider a multivariable system comprising a set of macroeconomic variables as inputs, states and outputs. In this setting the authors assess the control potential of fiscal policy versus a large negative business cycle shock that affects the output of the system. The inputs considered for this matter are the cyclical components of government spending and taxes. The states are the cyclical components of consumption and investment. These variables convey information to the policy maker at each time period. The output of the system is the cyclical component of GDP. In order to assess the control potential of government fiscal policy we begin by solving an optimal control problem minimizing the deviations of log GDP from its trend subject to a multivariable system and a set of input - output inequality constraints. Based on the results obtained the authors propose a set of optimal control indicators used to evaluate the effectiveness of fiscal policy action against a large negative business cycle shock and the potential controllability of the system.

The Influence of Fiscal Policy on Economic Growth

In this paper we analyze the influence of several types of fiscal policies on the process of economic growth, namely on the rate of growth of consumption.We formulate and analyze two types of economic growth models. The first refers to the way in which a consumer-producer agent takes decisions when the elements concerning fiscal policy are exogenous. The second model is a global model including the economic agent, as well as the government.Both models are dynamic models with discrete variables on infinite horizon. The technique used is provided by the Maximum Principle.We perform a comparative analysis of the results obtained on the basis of the two models. What is surprising is the conclusion that the growth rate of consumption is larger for the second model. At the same time, we prove that if the ratio between private and public consumption is equal to the ratio between the elasticity coefficients of the utility function, then the rate of economic growth does not depend on the value of the tax rate.

Wpływ polityki fiskalnej na konsumpcję gospodarstw domowych w krajach Unii Europejskiej

Wpływ polityki fiskalnej na konsumpcję gospodarstw domowych w krajach Unii Europejskiej

Interorganisational Relations in the Protected Area – Tourism Policy Domain: The Influence of Macro-economic Policy

A considerable body of work suggests that sustainable tourism development may only be achieved when sectoral fragmentation is overcome and collaborative planning achieved. This paper describes the findings from research that identifies obstacles to and opportunities for collaboration between two key stakeholders in a tourism policy domain. Specifically, the paper focuses on the influence of government macroeconomic policy on interorganisational relations between two government agencies. Generally, economic policy and practice provides not only the context, but also the rationale and legitimation of certain activities, and therefore shapes the nature of interorganisational relations, particularly when those organisations are reliant on state funding. Using an interorganisational relations framework, two federal government organisations in Canada involved in the 'national park – tourism' policy domain were studied to identify the influence of fiscal policy operating through a range of facilitating and inhibiting factors, on the formation and maintenance of relations between the organisations. The material for this paper has been drawn from a larger study that considers relations between a wider group of stakeholders in the Canadian 'national park-tourism' domain.

The Conduct of Fiscal Policy

The central focus of this paper is on the conduct of fiscal policy. But the influence of fiscal policy cannot sensibly be examined separately from other aspects of macroeconomic policy, such as monetary, exchange rate and incomes policies. Because of this, we the opportunity to range quite widely. Two broad themes emerge. The first concerns the consequences of consistent forward-looking expectations for the design of policy. The second concerns the global consequences of adopting generally in many countries policy rules designed in the single open economy context. Since policy appraisal is usually conducted in the single economy context, and policy design with consistent expectations is still relatively underdeveloped, it is useful to take stock of these two issues.

Fiscalité et croissance économique : commentaires sur des problèmes choisis

Taxation and economic growth : remarks on selected problems. The influence of fiscal policy on economic growth, defined as an increase in real per capita income, is difficult to determine for it varies according to the economic and social conditions within which the tax system operates. Still it can he shown that a high level of taxation affects both the extent of growth (by encouraging ploughing-back of profits) and its form (by encouraging certain types of activity). In particular, tax rates make it possible to shift in a desired direction the limit between market and non-market activities. Progressive income tax is unfavourable to risk because of the absence of symmetry in the treatment of gains and losses. Progressive rates reduce risk stimuli as well as risk-taking capacity because of the amputation of previous profits. In the United States, these effects are attenuated by offsetting losses over several years and in respect of several types of activity and by various exemptions (capital gains, for example). As family concerns remain highly important in a market economy, inheritance taxes also affect growth. The payment of death duties implies a previous withdrawal of liquid funds, which reduces the firm's investment capacity, and can endanger its existence. Taxes influence capital accumulation by their action on savings. Consequently, a greater degree of equality in income distribution seems to be irreconciliable with economic growth. But as it does give rise to «investment in men» it can contribute to growth even more than investment in things. Finally, fiscal policy acts on capital maintenance, unfavourably during inflation, or favourably if certain net investment costs can be deducted as amortization.