SIGNIFICANCE OF FISCAL POLICY FOR ECONOMIC DEVELOPMENT AND AGRICULTURE
DOI:
https://doi.org/10.5937/ekoPolj1902357VKeywords:
fiscal policy, economic development, fiscal policy as part of economic policy, agricultural policy, global economic crisisAbstract
With the latest global economic crisis (2007-2009) the importance of fiscal policy as a part of economic policy is growing. Its significance extends from the experience of the Great Depression of the 1930s. In this paper, with the help of the ARIMA model, the influence of fiscal policy instruments on macroeconomic fiscal indicators and some selected indicators of economic development in the context of countries of Southeast Europe have been explored. Friedmans test has shown that the countries have not yet recovered from the global economic crisis. The results shows that fiscal policy can act on the individuals standard of living, but only responsible implementation will have the same effect on public finances and the overall sustainable development of a country. Also, fiscal policy is an important measure of agricultural policy and is increasingly being used as a directional development factor.
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References
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52. Zelenović, V., Vojinović, Ž., & Cvijanović, D. (2018). Serbian Agriculture Loans With The Aim of Improving The Current Situation. Economics of Agriculture. 65(1), 323-336. doi:10.5937/ekoPolj1801323Z.
2. Aghion, P., & Howitt, P. (2009). The economics of growth. The MIT Press, London.
3. Allen, F., Carletti, E., Goldstein, I., & Leonello, A. (2015). Moral Hazard and Government Guarantees in the Banking Industry. Journal of Financial Regulation, 1(1), 30–50. doi: https://doi.org/10.1093/jfr/fju003.
4. Aničić, D., Nestorović, O., Simić, N., & Miletić, S. (2019). The Perspectives of Sustainable Development of Serbias Agriculture in Globalized Environment. Economics of Agriculture. 66(1), 221-235. https://doi.org/10.5937/ekoPolj1901221A.
5. Armstrong, J.S. (2006). Findings from evidence-based forecasting: Methods for reducing forecast error. International Journal of Forecasting, 22(3), 583-598. doi: https://doi.org/10.1016/j.ijforecast.2006.04.006.
6. Balatsky, Е., & Ekimova, Н. (2012). Fiscal Policy and Economic Growth. Problems of Economic Transition, 54(12), 55-70. doi: 10.2753/PET1061-1991541204.
7. Bleaney, M., Gemmel, N., & Kneller, R. (2001). Testing the endogenous growth model: public expenditure, taxation, and growth over the long run. Canadian Journal of Economics, 34(1), 36-57. doi: 10.1111/0008-4085.00061.
8. Brockwell, P.J., & Davis, R.A. (2002). Introduction to Time Series and Forecasting, 2nd ed. Springer-Verlag New York Inc, New York.
9. Bryne, D., & Ruane, S. (2017). Paying For The Welfare State In The 21st Century: Tax And Spending In Post-industrial Societies. Bristol University Press, Bristol.
10. Caprio, G., DApice, V., Ferri, G., & Walter Puopolo G. (2014). Macro-financial determinants of the great financial crisis: Implications for financial regulation. Journal of Banking & Finance, 44(7), 114-129. https://doi.org/10.1016/j.jbankfin.2014.03.001.
11. Claessens, S., Ayhan Kose M., Laeven, L., & Valencia F. (2014). Financial Crises: Causes, Consequences and Policy Responses. International Monetary Fund, Washington, D. C.
12. Corporate Profit Taxual Law according to "Official Gazette RS ", no. 95/2018 [In Serbian: Zakon o porezu na dobit pravnih lica "Sl. Glasnik RS", br. 95/2018].
13. Dalgaard, P. (2008). Introductory Statistics with R, 2nd ed. Springer, New York, NY.
14. Despotović D. (2015). The importance of fiscal consolidation in the process of EU accession. In: M. Jakšić, V. Stojanović Aleksić, P. Mimović (Eds.), Economic and social aspects of Serbias accession to the European Union (pp. 127-140). Faculty of Economics, University of Kragujevac, Kragujevac. [In Serbian: Despotović D. (2015). Značaj fiskalne konsolidacije u procesu pristupanja EU. U: M. Jakšić, V. Stojanović Aleksić, P. Mimović (Eds.), Ekonomsko-socijalni aspekti priklјučivanja Srbije Evropskoj uniji].
15. Despotović, D., & Durkalić, D. (2017), Analysis of budget deficit in the candidate countries for EU membership, Serbian Journal of Management, 12 (2), 237-253. DOI: 10.5937/sjm12-14122.
16. Domanović, V., Vujičić, M, & Ristić, L. (2018). Profitability of Food Industry Companies in The Republic of Serbia. Economics of Agriculture. 65(1), 11-32. doi:10.5937/ekoPolj1801011D.
17. Fabris, N., & Pejović, I. (2013). Economic Policy - Theory and Practice. High School of Economics and Administration, Belgrade. [In Serbian: Fabris, N., Pejović, I. (2013). Ekonomska politika-teorija i praksa].
18. Furtula, S., Durkalić, D., & Simionescu, M. (2018). Testing Phillips Curve For Serbian And Romanian Economy. Romanian Statistical Review, (3), 40-56. http://www.revistadestatistica.ro/wp-content/uploads/2018/09/RRS-3_2018_A4.pdf.
19. Gravetter, F.J., & Wallnau, L.B. (2017). Statistics for the Behavioral Sciences. 10th ed. Cengage Learning, Boston, MA.
20. Hyers, D., & Kovacova, M. (2018). The Economics of the Online Gig Economy: Algorithmic Hiring Practices, Digital Labor-Market Intermediation, and Rights for Platform Workers. Psychosociological Issues in Human Resource Management, 6(1), 160-165.
21. Hamilton, K., & Hepburn, C. (2017). National Wealth: What Is Missing, Why It Matters. Oxford University Press, Oxford.
22. Kovačević, R. (2010). International finances. Center for publishing at the Faculty of Economics in Belgrade, Belgrade. [In Serbian: Kovačević, R. (2010). Međunarodne finansije].
23. Koppel, J., & Kolencik, J. (2018). The Future of Workers: Contingent Forms of Labor Contracting in the Platform Economy. Psychosociological Issues in Human Resource Management, 6(1), 172-177
24. Lancaster, G. (2005). Research Methods in Management: A Concise Introduction to Research in Management and Business Consultancy. Butterworth-Heinemann, Oxford.
25. Lazonick, W. (2014). Profit without Prosperity: Stock Buybacks Manipulate The Market And Leave Most Americans Worse Off. Harward Business Review, September, 46-55. Retrieved from https://hbr.org/2014/09/profits-withoutprosperity.
26. Lee, C.,F., Lee, A.C., & Lee, J. (2010). Handbook of Quantitative Finance and Risk Management. Springer, New York, NY.
27. Maksimović, G. (2011). Demographic factors of local economic development in the Republic of Serbia, Agroeconomics, 49-50(2011). 47-57. [In Serbian: Maksimović, G. (2011). Demografski faktori lokalnog ekonomskog razvoja u Republici Srbiji. Agroekonomika].
28. Montgomery, D.C., Jennings, C.L., & Kulahci, M. (2008). Introduction to Time Series - Analysis and Forecasting. John Wiley & Sons Inc, Hoboken, NJ.
29. Moreno-Dodson, B. (2013). Is fiscal policy the answer?. The world bank, Washington.
30. Popescu, G. H., Petrescu, I. E., & Sabie, O. M. (2018). Algorithmic labor In the platform economy: digital infrastructures, job quality, and workplace surveillance. Economics, Management and Financial Markets, 13(3), 74-79.
31. Praščević, A. (2012). Economic Crises and Macroeconomic Policy Models. Center for publishing at the Faculty of Economics in Belgrade, Belgrade. [In Serbian: Praščević, A. (2012). Ekonomske krize i modeli makroekonomske politike].
32. Reinhart, C. M., & Rogoff, K. S. (2011). From Financial Crash to Debt Crisis. American Economic Review, 101(5), 1676–1706. doi:10.1257/aer.101.5.1676
33. Ristić, L. (2015). Economics of agriculture. Faculty of Economics, University of Kragujevac, Kragujevac [In Serbian: Ristić, L. (2015). Ekonomika poljoprivrede].
34. Rozen, H., & Gejer, T. (2009). Public finances. Center for publishing at the Faculty of Economics in Belgrade, Belgrad. [In Serbian: Rozen, H., Gejer, T. (2009). Javne finansije].
35. Singh, S. K., & Rao, D. T. (2018). Is Monetary Policy Symmetrical in Its Effect on Sectoral Output?. Economics, Management, and Financial Markets, 13(1), 11-31. doi:10.22381/EMFM13120181.
36. Stanković, K. (2006). Modern economic theories, principles and politics. Faculty of Economics, University of Kragujevac, Kragujevac. [In Serbian: Stanković, K. (2006). Savremene ekonomske teorije, principi i politika].
37. Sekera, J. (2018). Missing from the mainstream: the biophysical basis of production and the public economy. Economics, Management, and Financial Markets, 13(3), 56-73.
38. Stiglic, J.E. (2013). Free fall. Academic book, Novi Sad. [In Serbian: Stiglic, J.E. (2013). Slobodan pad].
39. Taylor, L., & Kliestikova, J. (2018). The Operational Coherence of the Workforceas-a-service Pattern: Digitally Mediated Service Work, the Contingency of Ondemand Employment, and the Low-income Labor Market. Psychosociological Issues in Human Resource Management, 6(1), 178-183.
40. Tica, N., Zekić, V., Milić, D., & Đajić, D. (2011). Agricultural households in the system of value added tax. Agroeconomics, 51-52(2011), 32-39 [In Serbian: Tica, N., Zekić, V., Milić, D., Đajić, D. (2011). Poljoprivredna gazdinstva u sistemu popreza na dodatu vrednost. Agroekonomika].
41. Thiele, A. (2018). The independence of the ECB: justification, limitations and possible threats. Journal of Self-Governance and Management Economics, 6(1), 98-121.
42. Todaro, M.P., & Smith, S.C. (2006). Economic development. Tajib Šahinpašić, Sarajevo. [In Serbian: Todaro, M.P., Smith, S.C. (2006). Ekonomski razvoj].
43. Value Added Taxual Law according to "Official Gazette RS ", no. 30/2018 [In Serbian: Zakon o porezu na dodatu vrednost prema "Sl. Glasnik RS", br. 30/2018].
44. Vujičić, M., & Ristić, L. (2006). Economics of agriculture. Interprint, Kragujevac. [In Serbian: Vujičić, M., Ristić, L. (2006). Ekonomika poljoprivrede].
45. Vukadin, E., & Labus, M. (2012). Economic Policy for Lawyers. Faculty of Law, University of Belgrade, Belgrade. [In Serbian: Vukadin, E., Labus, M. (2012). Ekonomska politika za pravnike].
46. Weisang, G., & Awazu, Y. (2008). Vagaries of the Euro: An Introduction to ARIMA Modeling. The Bentley University Journal, 2(1), 45-55. Retrieved from https://www.bentley.edu/sites/www.bentley.edu.centers/files/csbigs/weisang.pdf.
47. Wilson, J. (2010). Essentials of Business Research: A Guide to Doing Your Research Project. SAGE Publications, London.
48. World bank group. (2016). Taking on inequality – Poverty and shared prosperity 2016, The World bank, Washington.
49. Yaffee, R.A., & McGee, M. (2000). Introduction to Time Series Analysis and Forecasting with Applications of SAS and SPSS. Academic Press Inc, San Diego.
50. Yifu Lin J. (2012). New structural economics: a framework for rethinking development and policy. The world bank, Washington.
51. Zekić, S., Matkovski, B., & Kleut, Ž. (2016). IPARD funds in the function of development of rural areas of the Republic of Serbia, Economic horizons, 18(2), 169-180. [In Serbian: Zekić, S., Matkovski, B., Kleut, Ž. (2016). IPARD fondovi u funkciji razvoja ruralnih područja Republike Srbije, Ekonomski horizonti]. doi:10.5937/ekonhor1602169Z.
52. Zelenović, V., Vojinović, Ž., & Cvijanović, D. (2018). Serbian Agriculture Loans With The Aim of Improving The Current Situation. Economics of Agriculture. 65(1), 323-336. doi:10.5937/ekoPolj1801323Z.
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Published
2019-06-25
How to Cite
Veselinović, P., Dimitrijević, M., & Kostić, M. (2019). SIGNIFICANCE OF FISCAL POLICY FOR ECONOMIC DEVELOPMENT AND AGRICULTURE. Economics of Agriculture, 66(2), 357–373. https://doi.org/10.5937/ekoPolj1902357V
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Original scientific papers
