THE ASSESSMENT OF FISCAL DEFICIT ON ECONOMIC GROWTH IN TRANSITION COUNTRIES OF SOUTH-EASTERN EUROPE

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Luljeta Gllogjani
Driton Balaj

Abstract

The overall aim of this research is to observe the impact of fiscal deficit on economic growth in the transition economies of South-eastern Europe. The fixed-effects and dynamic linear regression were used to carry out this revision. The data used in this revision are quantitative data annually and cover the period 2005–2019. The outcomes detect that there is a confident and statistically important effect among the fiscal deficit and economic growth for the transition economies of Southeast Europe, supporting the Keynesian theory. Furthermore, the outcomes of this research show that public debt to GDP, foreign direct investment in GDP, exports, and imports in GDP have an important effect on economic growth. Findings have shown that public debt and imports have a positive influence on economic growth, unlike exports and foreign direct investment, which showed an adverse effect on economic growth. Moreover, for other additional factors, the inflation rate, the employment rate, and the real interest rate, the results of the study do not show any significant consequences on economic growth. The research also contributes in the macroeconomic aspect to the opening of discussions among the relevant stakeholders, including those coming from the policy-making area.

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How to Cite
Gllogjani, L. ., & Balaj, D. . (2021). THE ASSESSMENT OF FISCAL DEFICIT ON ECONOMIC GROWTH IN TRANSITION COUNTRIES OF SOUTH-EASTERN EUROPE. Journal of Liberty and International Affairs, 7(3), 102-117. https://doi.org/10.47305/JLIA2137102g
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Author Biographies

Luljeta Gllogjani, Faculty of Economics, University of Prishtina “Hasan Prishtina”, Kosovo

Luljeta Gllogjani holds a bachelor’s and a master’s in Economics in the field of Banking, Finance, and Accounting. She graduated from the University of Prishtina, Faculty of Applied Sciences in Business in 2016 with a Bachelor's Degree in Accounting, Finances, and Banks. In addition, she holds a Master's degree in Banking, Finance, and Accounting. She began Doctoral studies in 2013 at the University of Prishtina, Faculty of Economics, Banking, Finance, and Accounting. While in university, she earned the 2010 Diploma Distinguishable Student and in 2011 Gratitude “Distinguishable Student” for her exemplary academic performance skills. Work experience: 01.02.2013 - 30.06.2017 Assistant and lecturer, University "Haxhi Zeka", Faculty of Business, Peja 01.10.2014 - 30.06.2016: Assistant, University "Hasan Prishtina", Faculty of Philosophy, department: Political Science, Prishtina. In 2018, she published an article “Accounting Methods for Legal Business Combinations,” International Journal of Innovation and Research in Educational Sciences (IJIRES).

Driton Balaj, The University of Prishtina “Hasan Prishtina” – Prishtina, Kosovo

Driton Balaj works as an Assoc. Prof.  at University of Prishtina “Hasan Prishtina”, Faculty of Economics, Republic of Kosovo. Published papers: BalajDriton&LaniLirim (2017)“ The Impact of Public Expenditure on Economic Growth of Kosovo’’ Acta Universitatis Danubius: Oeconomica Balaj Driton & Mulaku –Balaj Teuta (2016) “Establishment and Development of Tax system – Disadvantages and Advantages of Taxes. The Case of Kosovo. Journal of Advanced Studies in Finance (JASF) Balaj Driton (2015) “A Comparison of Financial Performance of Domestic and Foreign banks in Kosovo by Using DuPont Model; Acta Universitatis Danubius: Oeconomica.

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