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September 28, 2025Anali Ekonomskog fakulteta u SuboticiOpen Access

The relationship between fiscal policy and economic growth: The case of Serbia

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NLNemanja Lojanica

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Overview

Time series analysis reveals a negative impact of government expenditures on economic growth, suggesting inefficiencies in public spending.

Key Points

  • An increase in government expenditures reduces economic growth in the long run, while an increase in government revenues enhances it.
  • Cointegration was established between fiscal parameters and economic growth, indicating a long-term relationship.
  • The causality test showed that changes in government expenditures cause changes in economic growth in the short run.
  • This study highlights the need for improved government efficiency and targeted public spending on essential services.

Cite This Study

Nemanja Lojanica (2025) studied this question.

synapsesocial.com/papers/68d9051441e1c178a14f4aa8https://doi.org/10.5937/aneksub2500014l
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