SIGNALLING ECONOMIC GROWTH THROUGH ECONOMETRIC ANALYSIS: ROMANIA’S CASE
SIGNALLING ECONOMIC GROWTH THROUGH ECONOMETRIC ANALYSIS: ROMANIA’S CASE

Summary/Abstract: It is commonly accepted that economic growth is influenced by numerous factors, such as interest rates, business environment conditions, inflation, unemployment, foreign direct investments, etc. But how do tax rate, public debt and consumption affect the economic growth in Romania? This study aims to analyze the relationship between these three factors and their aggregate impact on real GDP evolution, throughout econometric analysis. We start with the common assumption that a lower tax rate and public debt, along with an increasing consumption rate will positively influence real GDP ratio, and, consequently, will conduct to economic growth. The paper attempts to evaluate whether these assumptions apply in Romania’s case, by using a series of data over a period of 10 years. Data were provided by the National Institute of Statistics and have been processed using a linear regression function.

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