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Relationship between fiscal policy and capital market performance: evidence from Romania

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  • Stela JAKOVA

    (Bucharest University of Economic Studies, Romania)

  • Gabriela-Victoria ANGHELACHE

    (Bucharest University of Economic Studies, Romania)

Abstract

The aim of this paper is to analyze the relationship between fiscal policy and capital market performance in Romania’s case for period 1997 – 2014, especially in the context of the recent global crisis. In order to understand this type of relationship very well, we analyzed the both directions: the way in which financial policy affect the capital market performance and also the way in which capital market performance affects the fiscal policy. Our analyses emphasized the fact that only capital market performance had a significant influence on public expenditure, while the fiscal policy does not have any significant impact on capital market.

Suggested Citation

  • Stela JAKOVA & Gabriela-Victoria ANGHELACHE, 2016. "Relationship between fiscal policy and capital market performance: evidence from Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(Special(I), pages 158-164.
    • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:special(i):p:158-164
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    Cited by:

    1. Michael Anthony Adams, 2020. "Fiscal Policy and Stock Market Efficiency in the USA: An ARDL Bounds Testing Approach," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 9(2), pages 73-81.

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