Fiscal Variables and Economic Growth: Measuring the Impact for Romania
Fiscal Variables and Economic Growth: Measuring the Impact for Romania

Summary/Abstract: The present paper envisages the identification of fiscal variables with influence on economic growth, in the case of Romania. The results of studies from the literature show that there are various influences of fiscal variables on growth, which differ depending on countries and periods analyzed. The study presents a model which underlines the influence of fiscal variables on the economic growth, with GDP as proxy for economic growth, for 1991-2013 period. The results suggested that fiscal variables have a statistically significant impact on growth. The extent to which fiscal policy may influence economic growth continues to attract the attention of scholars, and the results of the paper may represent one starting point for future research to identify the relevant types of taxes and public spending to be analyzed in relationship with growth. The paper underlines the impact of fiscal variables on the economic growth in the case of Romania. Also, another goal of this paper is to underline the importance of checking the hypotheses for the regression model, knowing that their violations are leading to inaccurate results.

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