FISCAL POLICY AND ECONOMIC GROWTH IN ROMANIA

The connection between fiscal policy and economic growth is not a strong one, takinginto account that fiscal policy is not a fundamental source of growth. Even so, governmentauthorities could use fiscal policy to affect in an indirect manner the economic growth. We will tryto highlight this indirect connection and its strength on Romania’s case using a specificeconometric methodology which takes into account the restrictions imposed by the government’sbudget constraint and we will identify the specific fiscal policy measures which could enhanceeconomic growth in Romania.fiscal policy, economic growth, government budget constraint

FISCAL POLICY IN ENDOGENOUS ECONOMIC GROWTH MODELS WITH TWO R&D SECTORS

This paper is intended to investigate the possibilities for governmentinterventions based on fiscal policy measures in economies like those described inendogenous growth models with two R/D sectors.fiscal policy, endogenous economic growth

FISCAL POLICY SUSTAINABILITY IN ROMANIA

The paper is focused on aspects regarding fiscal policy sustainability inRomania. Analyzing the theoretical foundations of fiscal policy sustainability it could beidentified a methodology for econometric tests to be carried out and to put forward de factopublic debt long-run situation at the country level. In this direction, we carried outstationarity tests for the stock of the gross public debt and cointegration tests for the publicrevenues end public expenditures flows for the case of Romania.fiscal policy, sustainability, stationarity tests, cointegration tests

SEARCHING FOR HUMAN CAPITAL DETERMINANTS OF FOREIGN DIRECT INVESTMENT INFLOWS IN THE EU NEW MEMBER STATES

The specific levels and patterns of foreign direct investment in the Central and EasternEuropean countries could not be fully explained taking into account only the traditional economicdeterminants, as shown in the empirical studies undertaken so far. Hence, we search for someforeign direct investment determinants related with human capital, using panel data techniques, andshow that some of the human capital measures are positively correlated with foreign directinvestment inflows in Central and Eastern Europe.foreign direct investment, human capital

CULTURAL DETERMINANTS OF ECONOMIC GROWTH: THE CASE OF EUROPEAN COUNTRIES

The economic growth is based on a complex set of determinants, inside which the “pure” economic variables plays an important but not unique role. The “soft” factors like information and social institutions, rules and behaviours, as well as the elements of the dominant cultural paradigm could not be easily included in the “and others” category. Thus, the aim of this paper is to provide a possible framework for the analysis of this type of determinants, able to deal especially with the interactions between culture and growths. Part I deals with the theoretical foundation by argue that “in long run” the social dynamic is not influenced only by resources and technology but also by the way in which the social actors interact in the primary distribution of the resources and in their social reallocation taking into account the cultural restrictions and requirements. Part II is an attempt to examine some empirical evidences in the favour of some results derived from this foundation. The main conclusion of the paper could be resumed by the thesis that the process of the sustainable growth could not be comparer with a linear voyage in a modern train “from here to eternity”. Rather is a trip into unknown with a colour and noisy caravan.Sustainable growth, “soft determinants”, cultural paradigm

A NEW APPROACH OF THE BUDGET DEFICIT: AN EMPIRICAL ANALYSIS

Economic policies and, particularly, fiscal policies are not designed and implemented in an “empty space”: the structural characteristics of the economic systems, the institutional architecture of societies, the cultural paradigm and the power relations between different social groups, define the borders of these policies. This paper tries to deal with these borders, to describe their nature and the implications of their existence to the fiscal policies’ quality and impact at a theoretical level as well as at an empirical one. The main results of the proposed analysis support the ideas that the mentioned variables matters both for the social mandate entrusted by the society to the state and thus to role and functions of the state and for the economic growth as a support of the resources collected at distributed by the public authorities.budget deficit, structural characteristics, economic freedom, institutions, cultural paradigm, political freedom

Empirical Evidencies for the Budget Deficits Co-Integration in the Old European Union Members: Are there any Interlinkages in Fiscal Policies?

In the last years, the fiscal harmonization among the European Union members has become a pillar of economic integration and of fiscal and financial stability in the European area. The institutional changes, the semi-failure of the “old” Stability and Growth Pact as well as the recent waves of enlargements all these were put a greater emphasis on this issue inducing a higher pressure for fiscal discipline. In this context, the objective of the paper is to examines recent empirical evidences for bilateral and multilateral integration between fiscal policies, as this are synthesised by budget deficits, of old European Union members in the framework of the Johansen co-integration procedure with a preliminary appliance of the principal component analysis. The study finds that the dynamic of European fiscal policies takes place under the impact of some common driving forces which leads to a differentiate behaviour of two sub regional-groups individualized by the budget deficit series evolutionary patterns. Overall, it concludes that there could be find empirical evidences to support the thesis that a process of fiscal integration is currently running at least at the level of old European Union countries.Fiscal policies in E.U., budget deficits, co-integration, Johansen Test

THE CONNECTION BETWEEN RESOURCES AND ALLOCATIONS. THE BEHAVIOUR OF PUBLIC CENTRAL ADMINISTRATION: THE ROUMANIAN CASE

The aim of this paper is to emphasize how the correlations between public resources flows and their allocations are manifesting. The results obtained suggest the existence of some “fast” adjustment processes between them, inducted by the intrinsic characteristics of the fiscal policy, and also by the specific behaviour of Romanian public authorities, particularities traced by the way of adoption and application of the public decision.public revenues, public expenditures, public decision, impulse function

A cultural model of performance at the central government level

The paper intends to draw a possible framework for evaluating the performance of the administration at the central government level. We propose a simple pool-data model in which we tried to make a connection between main macroeconomic variables that are in part the result of government actions in the pursuit of its social end economic objectives and some variables that are reflecting the social-cultural-political dimensions of government decisions.Performance, efficiency, government, culture, politics

AGENCY, ASSOCIATIONS AND CULTURE: A THALE OF STATE AND SOCIETY

The way in which the social subjects take decisions, the interactions established between these, the web of social institutions and rules, the architecture of the power relationships between the various “points of social coagulation” have as a foundation a complex set of determinants, in which the “pure” economic factors have an important, but not unique role. Thus, this paper intends to draft a possible analytical framework, capable of allowing the stress of some existing connections between the cultural variables, the social actions and the role of the public power. Heavy indebted to OLSON and NOZICK, the starting point is made out by a version of the mandate theory, within the way in which society, as a whole, as well as its individual components, delegates a certain set of social responsibilities to the public authorities, based on some social utility functions, which include the characteristics of the dominant cultural model. Part I of the paper deals with the elements of the theoretical foundation, elements resumed by a set of critical postulates and a special definition of state as the dominant agency in a social space and also of the negotiation/parallel associations. Part II is an attempt to examine some empirical evidences in the favor of some results derived from this foundation. The main conclusion of the paper could be resumed by the idea that trying to describe the interactions between state and society without taking into the account the characteristics of the cultural paradigm is equivalent to talk about Hamlet without mentioning the prince of Denmark.agency, negotiation/parallel associations, cultural paradigm