Social Spending: Appropriate Instrument for Promoting Economic Growth in the Long-Term?

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Social Spending: Appropriate Instrument for Promoting Economic Growth in the Long-Term?

Popis výsledku v původním jazyce

The aim of this article is to examine the effects of changes in social spending on economic growth in the long term by using panel VAR model with impulse response functions. The empirical analysis is made on OECD countries in the period 1980-2014. Exogenous variables in the estimated panel VAR model are standard growth variables expressed as gross fixed capital formation and the aggregate capital productivity. Endogenous variables are then fiscal variables, i.e. the social spending and the tax revenues. A third endogenous variable is GDP per capita. The empirical analysis suggests that social spending have not impact on economic growth in the long term. Impulse response functions showed that changes in social spending (both impulse and step) affect economic growth only in the short term, the changes disappear within four years. It is possible to conclude that policy makers should use social spending as a tool for the creation of an appropriate institutional framework rather than an instrument for the purposeful promotion long-term economic growth.

Název v anglickém jazyce

Social Spending: Appropriate Instrument for Promoting Economic Growth in the Long-Term?

Popis výsledku anglicky

The aim of this article is to examine the effects of changes in social spending on economic growth in the long term by using panel VAR model with impulse response functions. The empirical analysis is made on OECD countries in the period 1980-2014. Exogenous variables in the estimated panel VAR model are standard growth variables expressed as gross fixed capital formation and the aggregate capital productivity. Endogenous variables are then fiscal variables, i.e. the social spending and the tax revenues. A third endogenous variable is GDP per capita. The empirical analysis suggests that social spending have not impact on economic growth in the long term. Impulse response functions showed that changes in social spending (both impulse and step) affect economic growth only in the short term, the changes disappear within four years. It is possible to conclude that policy makers should use social spending as a tool for the creation of an appropriate institutional framework rather than an instrument for the purposeful promotion long-term economic growth.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of 14th International Scientific Conference: Economic Policy in the European Union Member Countries

ISBN

978-80-7510-210-2

ISSN

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e-ISSN

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Počet stran výsledku

7

Strana od-do

102-108

Název nakladatele

Slezská univerzita v Opavě

Místo vydání

Opava

Místo konání akce

Petrovice u Karviné

Datum konání akce

14. 9. 2016

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000403638200011