HOW GOVERNMENT OUTFLOW AND PUBLIC DEBT AFFECT INFLATION: EVIDENCE FROM SEE COUNTRIES

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Erëza A. Arifi

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.

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How to Cite
Arifi, E. A. . (2021). HOW GOVERNMENT OUTFLOW AND PUBLIC DEBT AFFECT INFLATION: EVIDENCE FROM SEE COUNTRIES. Journal of Liberty and International Affairs, 7(3), 140-156. https://doi.org/10.47305/JLIA2137140a
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Articles
Author Biography

Erëza A. Arifi, College for International Management - Prishtina, Kosovo

Erëza ARIFI completed her doctoral studies at the Faculty of Economics, at the University of Tirana in the Department of Finance. She started her professional career in the teaching process in 2018, at the College of International Management - GLOBUS and there she earned the academic title of Assistant Professor PhD in the subjects: Corporate Finance, Banking Management, and Public Finance. Mrs. ARIFI has shown professional skills in other government institutions, where she was the Manager of the Procurement Department within the Ministry of Infrastructure from 2010 to 2018. She has a considerable number of scientific publications, international reviews, mainly in the field of finance.

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