Munich Personal RePEc Archive

Fiscal policy and economic growth: the case of Albania

Shijaku, Gerti and Gjokuta, Arlind (2013): Fiscal policy and economic growth: the case of Albania. Published in:


Download (1MB) | Preview


This discussion material analysis the effects of fiscal policy on the economic growth in the case of a small open developing country, Albania, by employing an endogenous growth model on a GMM approach. The results obtained show that government revenue policies has a higher effect on economic growth than those on government expenditure. The impact of revenue and expenditure on growth were analysed by categorising tax revenue into distortionary and non-distortionary, whilst government expenditure were divided into productive and non-productive. Under such composition we found that revenue sub-categories reduce growth, while distortionary taxation has much larger and statistically significant effect. Besides, the parameter values show that growth is effected positively by productive expenditure and negatively by non-productive. Also, this paper analysis the impact of public debt on growth and finds that the size of public debt is negatively related to growth rate.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.