GOVERNMENT EXPENDITURES EFFECTS ON ECONOMIC GROWTH IN THE REPUBLIC OF MACEDONIA
Research Article
GOVERNMENT EXPENDITURES EFFECTS ON ECONOMIC GROWTH IN THE REPUBLIC OF MACEDONIA
ABSTRACT
This paper has an aim to analyze the impact of government expenditures on economic growth in Republic of Macedonia during the time period of 2000Q1 – 2016Q4. For this purpose, are used time series regression models and the vector auto regression (VAR) research methodology which help to identify the influence of government expenditures on GDP. The results of the analysis reveal a positive response of GDP to an increase in government expenditure which is in line with the macroeconomic theory of expansionary fiscal policy. Still, a reform of the public expenditure structure in the country is essential, especially in the share of capital expenditures which needs to be increased because those are the ones that refer to investments that drive economic growth.
VELICHKOVSKA, K.,
&
SADIKU, L.,
(2019). GOVERNMENT EXPENDITURES EFFECTS ON ECONOMIC GROWTH IN THE REPUBLIC OF MACEDONIA. Trends in Economics, Finance, and Management Journal, 1(1), 63-72. Arrival Date Posted By:https://tefmj.ibupress.com/articles/government-expenditures-effects-on-economic-growth-in-the-republic-of-macedonia
