PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES
Improving planning and increasing the efficiency of public expenditures, as well as determining their optimal structure, are crucial tasks for a country's development. However, these tasks become significantly more complex under conditions of uncertainty and are particularly relevant during ec...
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FINTECH Alliance LLC
2025-06-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
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| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/4717 |
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| author | Ірина Сторонянська Лілія Беновська Олена Івашко Наталія Ситник Андрій Дуб |
| author_facet | Ірина Сторонянська Лілія Беновська Олена Івашко Наталія Ситник Андрій Дуб |
| author_sort | Ірина Сторонянська |
| collection | DOAJ |
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Improving planning and increasing the efficiency of public expenditures, as well as determining their optimal structure, are crucial tasks for a country's development. However, these tasks become significantly more complex under conditions of uncertainty and are particularly relevant during economic crises. This study examines the characteristics and trends of the impact of public spending on economic growth during crisis periods in developed countries. A systematic methodological approach is applied in combination with statistical research methods. Several authorial hypotheses have been confirmed: according to Wagner's law, an increase in public expenditures should be accompanied by GDP growth; the socio-economic development of a country is determined not only by the volume but also by the efficiency of public financial resource utilization (in line with Keynes' hypothesis); the level of GDP redistribution through the state budget is sensitive to crises; local budgets are less affected by financial and economic crises; and in the face of external threats, especially when a country is involved in a military conflict, the role of the state increases. The study results provide several managerial recommendations aimed at improving the public investment system for local development.
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| format | Article |
| id | doaj-art-696fc13f2d284fd2a54bbcc4a5afb820 |
| institution | Kabale University |
| issn | 2306-4994 2310-8770 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj-art-696fc13f2d284fd2a54bbcc4a5afb8202025-08-20T03:32:19ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702025-06-0136210.55643/fcaptp.3.62.2025.4717PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIESІрина Сторонянська0Лілія Беновська1Олена Івашко2Наталія Ситник3Андрій Дуб4D.Sc. in Economics, Professor of the Department of Regional Financial Policy, SI "Institute of Regional Research of the National Academy of Sciences of Ukraine", Lviv, UkrainePhD in Economics, Senior Research Fellow of the Department of Regional Financial Policy, SI "Institute of Regional Research of the National Academy of Sciences of Ukraine", Lviv, UkrainePhD in Economics, Associate Professor of the Department of Finance, Lesia Ukrainka Volyn National University, Lutsk, UkraineD.Sc. in Economics, Professor of the Department of Financial Management, Ivan Franko National University of Lviv, Lviv, UkrainePhD in Economics, Associate Professor of the Department of Regional Financial Policy, SI "Institute of Regional Research of the National Academy of Sciences of Ukraine", Lviv, Ukraine Improving planning and increasing the efficiency of public expenditures, as well as determining their optimal structure, are crucial tasks for a country's development. However, these tasks become significantly more complex under conditions of uncertainty and are particularly relevant during economic crises. This study examines the characteristics and trends of the impact of public spending on economic growth during crisis periods in developed countries. A systematic methodological approach is applied in combination with statistical research methods. Several authorial hypotheses have been confirmed: according to Wagner's law, an increase in public expenditures should be accompanied by GDP growth; the socio-economic development of a country is determined not only by the volume but also by the efficiency of public financial resource utilization (in line with Keynes' hypothesis); the level of GDP redistribution through the state budget is sensitive to crises; local budgets are less affected by financial and economic crises; and in the face of external threats, especially when a country is involved in a military conflict, the role of the state increases. The study results provide several managerial recommendations aimed at improving the public investment system for local development. https://fkd.net.ua/index.php/fkd/article/view/4717public spendingbudgetsustainable economic growthcrisisstructure of expendituresmanagerial recommendations |
| spellingShingle | Ірина Сторонянська Лілія Беновська Олена Івашко Наталія Ситник Андрій Дуб PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES Фінансово-кредитна діяльність: проблеми теорії та практики public spending budget sustainable economic growth crisis structure of expenditures managerial recommendations |
| title | PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES |
| title_full | PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES |
| title_fullStr | PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES |
| title_full_unstemmed | PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES |
| title_short | PUBLIC SPENDING AND SUSTAINABLE ECONOMIC GROWTH IN TIMES OF CRISIS: EMPIRICAL TESTING OF DEVELOPED COUNTRIES |
| title_sort | public spending and sustainable economic growth in times of crisis empirical testing of developed countries |
| topic | public spending budget sustainable economic growth crisis structure of expenditures managerial recommendations |
| url | https://fkd.net.ua/index.php/fkd/article/view/4717 |
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