HOW GOVERNMENT OUTFLOW AND PUBLIC DEBT AFFECT INFLATION: EVIDENCE FROM SEE COUNTRIES
HOW GOVERNMENT OUTFLOW AND PUBLIC DEBT AFFECT INFLATION: EVIDENCE FROM SEE COUNTRIES
Author(s): Erëza A. ArifiSubject(s): Politics / Political Sciences, Politics, Economy, National Economy, Supranational / Global Economy, Business Economy / Management, Political Theory, Political Sciences, Civil Society, Governance, Economic policy, Government/Political systems, Welfare systems, Political economy, Comparative politics, EU-Accession / EU-DEvelopment, Financial Markets, Public Finances, Fiscal Politics / Budgeting, Human Resources in Economy, ICT Information and Communications Technologies, Socio-Economic Research, Corruption - Transparency - Anti-Corruption
Published by: Institute for Research and European Studies - Bitola
Keywords: Public Debt; Government Outflows; Panel Data; Fixed-Effect
Summary/Abstract: The study aims to address public debt and government outflow affecting inflation in some of the countries of Southeast Europe, observing a combination of factors both theoretically and econometrically. The investigation included six (6) SEE countries, including the 2006-2020 timeframe, with 90 observations. The dynamic approach, the fixed effect, and the Arellano/Bond estimator were used to check the parameters considered in the study using panel data. Furthermore, the study also applied diagnostic tests such as the Sargan over-identifying restrictions and Pedroni test for cointegration. The results of the fixed effect and Arellano / Bond estimation demonstrate that public debt, current budget outflows, and capital budget outflows affect inflation, while overall budget outflows are insignificant. For further studies, it would be useful to apply other dynamic models by applying other specific factors, which will be considered as a useful contribution to the academic, research, and policy-making structures.
Journal: Journal of Liberty and International Affairs
- Issue Year: 7/2021
- Issue No: 3
- Page Range: 140-156
- Page Count: 17
- Language: English