Growth-Maximising budget deficit in BRICS-T: A panel threshold approach
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Tarih
2024
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Bucharest University of Economic Studies
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
The budget deficit affects the sustainability of macroeconomic stability for both developed and developing countries, although the reasons for their occurrence differ. The importance of budget deficit varies depending on whether it supports or hinders economic growth. This paper aims to estimate the growth-maximising budget deficit ratio in BRICS-T countries empirically. To calculate the growth-maximising budget deficit ratio, the panel threshold approach was used from 1990–2021. According to findings, the BRICS-T countries can maximise economic growth by keeping their budget deficit between 0.66% and 3.30% of GDP. The findings of this research point to the importance of fiscal discipline and support for moderate budget deficits for fiscal policymakers of BRICS-T countries. Moreover, it can be stated that the Maastricht Criteria has an extremely critical value not only for the European Union but also for the BRICS-T countries.
Açıklama
Anahtar Kelimeler
BRICS-T Countries, Budget Deficit, Economic Growth, Panel Threshold
Kaynak
Economic Computation and Economic Cybernetics Studies and Research
WoS Q Değeri
N/A
Scopus Q Değeri
Q3
Cilt
58
Sayı
3
