THE IMPACT OF FISCAL POLICY ON ECONOMIC GROWTH

Authors

  • H. Hakimov Researcher of Tashkent State University of Economics, 49 Islam Karimov Avenue, Tashkent, 100066, Uzbekistan.

Keywords:

Fiscal policy, economic growth, government expenditure, taxation, public debt, fiscal sustainability.

Abstract

Fiscal policy, encompassing government spending and taxation, is a critical tool for influencing economic growth. This study examines the relationship between fiscal policy and economic growth by analyzing its theoretical and empirical dimensions. The paper reviews existing literature to identify how government expenditure and tax policies affect economic performance, employing a quantitative methodology to assess data from selected economies. Results indicate that fiscal policies designed to stimulate investment and consumption positively impact economic growth, while excessive public debt can dampen growth potential. Policy suggestions are provided to optimize fiscal strategies for sustainable growth.

References

1. Barro, R. J. (1990). Government Spending in a Simple Model of Endogenous Growth. Journal of Political Economy, 98(5), S103–S125.

2. Easterly, W., & Rebelo, S. (1993). Fiscal Policy and Economic Growth: An Empirical Investigation. Journal of Monetary Economics, 32(3), 417–458.

3. International Monetary Fund. (2023). Fiscal Policy and Economic Growth. IMF Publications.

4. Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money. London: Macmillan.

5. Reinhart, C. M., & Rogoff, K. S. (2010). Growth in a Time of Debt. American Economic Review, 100(2), 573–578.

6. Romer, P. M. (2010). Taxation and Economic Growth. American Economic Review, 100(2), 191–195.

7. World Bank. (2023). World Development Indicators. Washington, DC: World Bank.

Published

2024-11-18

How to Cite

H. Hakimov. (2024). THE IMPACT OF FISCAL POLICY ON ECONOMIC GROWTH. EUROPEAN JOURNAL OF BUSINESS STARTUPS AND OPEN SOCIETY, 4(11), 104–108. Retrieved from http://inovatus.es/index.php/ejbsos/article/view/4520

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