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The Impact Of Fiscal And Budgetary Policies On The Unemployment Rate In The Eu Member States

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  • ALEXANDRU DRONCA

    (WEST UNIVERSITY OF TIMISOARA, FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION, TIMISOARA, ROMANIA)

  • ANA-MARIA ARJOCU

    (WEST UNIVERSITY OF TIMISOARA, FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION, TIMISOARA, ROMANIA)

Abstract

The tax system is one of the main tools by which a State exercises sovereignty through the collection, allocation and redistribution of revenues in a given territory. This paper aims to highlight how the characteristics of tax systems, in the Member States of the European Union, affect the unemployment rate. To achieve this goal, indicators for the 28 Member States of the European Union for the period 2004-2012 where used in the study. Starting with an analysis of panel data models, developed using a range of indicators specific for tax systems (budget revenues, budget expenditures, public investment, direct taxes, indirect taxes and social contributions),as exogenous variables and the unemployment rate, as an endogenous variable. The results show that the fiscal and budgetary policies of EU Member States can play a positive role in reducing unemployment, provided that their application and use will meet certain standards and performance criteria and do not harm business.

Suggested Citation

  • Alexandru Dronca & Ana-Maria Arjocu, 2015. "The Impact Of Fiscal And Budgetary Policies On The Unemployment Rate In The Eu Member States," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 203-207, February.
    • Handle: RePEc:cbu:jrnlec:y:2015:v:1ii:p:203-207
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    References listed on IDEAS

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    1. Jesús Ferreiro & Giuseppe Fontana & Felipe Serrano (ed.), 2008. "Fiscal Policy in the European Union," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-22826-9.
    2. Hrvoje Šimović, 2007. "Fiscal system and fiscal relations in the European Union: political restraints and alternative approach to public finance," EFZG Working Papers Series 0704, Faculty of Economics and Business, University of Zagreb.
    3. Gwenaëlle Poilon, 2008. "Public Capital and Economic Growth: a Spurious Empirical Link?," Palgrave Macmillan Books, in: Jesús Ferreiro & Giuseppe Fontana & Felipe Serrano (ed.), Fiscal Policy in the European Union, chapter 5, pages 109-128, Palgrave Macmillan.
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    Cited by:

    1. Andrei Ionut Husman, 2018. "Taxation Of Employees In Romania In 2018. Changes And Its Results On The Country’S Economy," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 3(special), pages 46-55, May.

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