Fiscal Policy, Factors of Endogenous Growth and Dynamics of Slovenian Exports
Keywords:fiscal policy, exports, economic growth, R&D, highly educated workforce, Slovenia
In the modern world of rapidly changing technologies, fiscal policy engagement is also needed to promote and adapt to these changes. In order to achieve economic growth, every country needs to ensure an adequate institutional environment and financial incentives for technological development. These investment incentives operate through tax system directly or indirectly. The aim of the paper is to assess the impact of Slovenia's endogenous economic growth factors on exports in the 2009–2016 period. A panel data analysis was applied to obtain empirical results. The analysis showed that a 1% real increase in government subsidies to the economy over three subsequent years increases real investment in research and development by 0.45%, and after a two-year period yields a 0.27% increase in employment of persons with higher education. The latter has a 0.14 % positive impact on the growth of exports after another three-year term. In addition to endogenous factors of economic growth in the Slovenian case, exports are also affected by the dynamics of real world trade, by the dynamics of exchange rates corrected for relative prices, and by the dynamics of wage rates.