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The Statistical Analysis of the Relationship Between Poverty and Public Expenses in the European Union Countries

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  • Jitoreanu Doina

    (“Alexandru Ioan Cuza†University of Iasi)

  • Chirilă Viorica

    (“Alexandru Ioan Cuza†University of Iasi)

Abstract

The 2020 Europe strategy has among its objectives the reduction of poverty. This study aims to observe if the European Union countries distribute and perform the public expenses by state functions so that it influences the reduction of poverty. The study also tackles the identification of the types of public expenses by state functions which have the greatest effect in the poverty reduction. The analysis is performed on 27 of the 28 countries of the European Union. The variables for Cyprus have extreme values and that is why this country has been excluded from the analysis. The results obtained confirm that in 2015, the expenses performed by state functions have a significant influence on poverty reduction. The greatest influence is held by the expenses for social protection and they are followed by the health care, business and education-related expenses. Thus, the EU countries should distribute their public expenses prevalently towards these state functions in order to minimize poverty.

Suggested Citation

  • Jitoreanu Doina & Chirilă Viorica, 2017. "The Statistical Analysis of the Relationship Between Poverty and Public Expenses in the European Union Countries," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 576-582, December.
    • Handle: RePEc:ovi:oviste:v:xvii:y:2017:i:2:p:576-582
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    References listed on IDEAS

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    Cited by:

    1. Ivana Velkovska & Borce Trenovski, 2023. "Economic growth or social expenditure: what is more effective in decreasing poverty and income inequality in the EU - a panel VAR approach," Public Sector Economics, Institute of Public Finance, vol. 47(1), pages 111-142.

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    More about this item

    Keywords

    poverty; public expenses; regression analysis;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • H19 - Public Economics - - Structure and Scope of Government - - - Other

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