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Fiscal Consolidation Impact on Economic Growth: A systematic review and meta- analysis
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Vahid Shahabinejad   1, Ali Nasiri aghdam |
| 1- , shahabinejad375@gmail.com |
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Abstract: (215 Views) |
using countercyclical fiscal policies in macroeconomics has a long history. Policymakers use these policies to stabilize the economy and put the economy on the path of long-term growth. The experience of the 2008 financial crisis somewhat complicated this issue. Because the countries involved in economic recession were also facing high debt crisis. It is natural in such a situation to use any expansionary fiscal policy for economic stabilization, disrupting financial stability and leading to the deepening of the financial crisis. Therefore, the Fiscal consolidation of governments is of great importance in such times, although there is no single opinion regarding its relationship with economic growth. Considering the importance of financial consolidation in the economy, in this study we have investigated its relationship with economic growth. Based on this, in the first stage, we received 1402 studies from reliable databases using the keywords of Fiscal consolidation and economic growth, and then, according to meta-analysis protocols, we selected only 22 studies with final conditions to continue the study. The results of combining the effect size in different studies is 0.023, but it is not statistically significant. The positive effect size can be attributed to the co-direction of Fiscal consolidation and economic growth, which in the macroeconomics literature is related to the Keynesian effects of Fiscal consolidation. But the interpretation of its non-significance in this study is also that it is not possible to make a firm opinion about the Keynesian or non-Keynesian effects of Fiscal consolidation, as in the literature presented in macroeconomics. In the following, the results of the heterogeneity test and the publication bias of the meta-analysis confirmed the validity of the obtained results.
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Article number: 12 |
| Keywords: Economic growth, Fiscal consolidation, systematic review, Meta-analysis |
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Full-Text [PDF 784 kb]
(83 Downloads)
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Article type: Research |
Subject:
Special
Received: 2024/04/10 | Accepted: 2024/05/28 | Published: 2024/12/30
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