HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES
This research examines the impact of fiscal policy on private investment in emerging economies, focusing on the effects of indirect taxes, public expenditures, and budget deficits. The methodology includes econometric analyses, using a multiple regression model to assess the relationship between...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Academica Brâncuşi
2024-12-01
|
| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| Subjects: | |
| Online Access: | https://www.utgjiu.ro/revista/ec/pdf/2024-06,%20Volumul%20II/06_Dobrota.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This research examines the impact of fiscal policy on private investment in emerging economies, focusing on the
effects of indirect taxes, public expenditures, and budget deficits. The methodology includes econometric analyses,
using a multiple regression model to assess the relationship between direct taxes, government spending and the budget
deficit, relative to private investment. The findings confirm the hypothesized relationships: indirect taxes negatively
affect private investment, infrastructure-focused public spending stimulates investment, and large budget deficits create
uncertainty that discourages investment. These results underscore the importance of a balanced and strategic fiscal
policy approach in emerging economies. Policymakers should consider reducing reliance on indirect taxes, prioritizing
public spending on infrastructure development, and maintaining fiscal discipline to foster a favorable environment for
private investment and sustainable economic growth. |
|---|---|
| ISSN: | 1844-7007 2344-3685 |