Preliminary communication
https://doi.org/10.22598/iele.2022.9.1.2
ALLOCATION OF GOVERNMENT EXPENDITURES IN SECTORS AND THEIR IMPACT ON ECONOMIC GROWTH - CASE STUDY: WESTERN BALKAN COUNTRIES
Driton Qehaja
orcid.org/0000-0002-9147-4468
; University of Prishtina, Prishtina, Kosovo
Atdhetar Gara
orcid.org/0000-0003-4341-7802
; Drenas – Gllogoc, Kosovo
Gazmend Qorraj
; University of Prishtina, Pristina, Kosovo
Abstract
The purpose of this article is to investigate the influence of government expenditure on economic growth and the impact of tax income on government spending. The study examines Western Balkans nations from 2000 to 2020, using several econometric models and analyses to determine the link between these factors. The models utilized for econometric analysis include the Ordinary Least Squares model, the Fixed Effects model, and the Random Effect model. To produce more qualitative findings, the technique is based on these three regression econometric models. The data used are Panel data and span a period of 21 years (2000-2020). The research comprises six Western Balkan nations. According to the findings of this study, there is a positive and statistically significant association between government expenditure and economic development in the Western Balkan nations over the studied period. The findings also reveal that tax revenues have a positive and statistically significant influence on the expenditures of these nations’ governments.
Keywords
economic growth; government spending; taxes; fiscal policy
Hrčak ID:
280271
URI
Publication date:
12.7.2022.
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