Impact Of Fiscal Policy On Economic Development In Ukraine
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Date
2013
Authors
Lukianenko, Iryna
Sydorovych, Mariia
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Abstract
The paper aims on assessing the impact and efficiency of fiscal policy instruments for gaining macroeconomic goals in transition economies. For this reason the macroeconomic model of the Ukrainian budgetary sector is developed. The model represents interrelations between the budgetary sector and real economy reflecting the way financial resources are redistributed through the budgetary system. The model serves as a basis for scenario analysis of different types of fiscal policy and their effect on economic indicators. It also allows for forecasting budgetary revenues in order to compose an efficient budget estimates. The results of the research prove that in transition economy such as Ukrainian the channel of tax rate on personal income tax is more efficient from fiscal point of view than the one on enterprise profit tax, while reallocation of resources between budgetary transfers to population and R&D is more efficient than increasing budget expenditures. Since increase in expenditures influences higher increase in GDP, the model proves Keynesian effects in the economy of Ukraine.
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Keywords
fiscal policy, macroeconomic model of budgetary sector, simultaneous equation modelling, economic development, transition economies, Ukraine, фіскальна політика, економічний розвиток
Citation
Lukianenko I. Impact Of Fiscal Policy On Economic Development In Ukraine / Iryna Lukianenko, Mariia Sydorovych // Hyperion International Journal Of Econophysics & New Economy. - 2013. - Vol. 6, Issue 1. - P. 91-116