CASE - Centre for Social and Economic Research
(European Economy. Economic Papers. 394. December 2009.
Brussels. PDF. 71pp. Free.)
KC-AI-09-394-EN-C ISBN: 978-92-79-13369-5 ISSN: 1725-3187
Based on the conceptual framework developed by the European Commission for linking the quality of public finances and economic growth, this study examines empirically the key channels through which fiscal policy impacts economic growth in the Mediterranean partner countries of the EU. The results confirm that the function of specific disaggregated fiscal parameters like debt financing, governance, efficiency of spending, mixture of taxes can have a significant impact on growth.