Fiscal Policy, Factors of Endogenous Growth and Dynamics of Slovenian Exports

France Krizanic; Sabina Hodzic; Borut Vojinovic

doi:10.5755/j01.ee.32.1.26311

Authors

France Krizanic EIPF, Institute of Economics Ltd., Slovenia
Sabina Hodzic University of Rijeka, Faculty of Tourism and Hospitality Management, Croatia
Borut Vojinovic University of Maribor, Faculty of Tourism and EIPF, Institute of Economics Ltd., Slovenia https://orcid.org/0000-0002-6417-6166

DOI:

https://doi.org/10.5755/j01.ee.32.1.26311

Keywords:

fiscal policy, exports, economic growth, R&D, highly educated workforce, Slovenia

Abstract

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.

Author Biographies

France Krizanic, EIPF, Institute of Economics Ltd., Slovenia

France Križanič: PhD in Economics; received PhD on the Faculty of Economics in Zagreb (1997). He is scientific councilor at EIPF, Economic Institute Ltd. in Ljubljana. His research interests are: External Exchange and Capital Flow, Economic Growth, Energy and Ecology. He served as Chairman of the Council of Experts of the Insurance Supervision Agency of the Republic of Slovenia (2000 - 2005), Director of EIPF Economic Institute Ltd. (2001 - 2008), the Minister of Finance in the Government of the Republic of Slovenia (2008-2012), and the Member of the National Assembly of the Republic of Slovenia (2014 – 2015).

Sabina Hodzic, University of Rijeka, Faculty of Tourism and Hospitality Management, Croatia

Sabina Hodžić: PhD in Economics, Associate Professor and Head of the Department of Public Finance at the Faculty of Tourism and Hospitality Management, University of Rijeka (Croatia). Her main fields of research are Public Finance, International Taxation issues and Local and Regional Government. She lectures on public finance and international taxation and is the author of several papers published in scientific journals. As a part of professional training, she stayed at Vienna University of Economics and Business (2018), University of New South Wales, Australia (2018), and University of Economics, Slovakia (2016).

Borut Vojinovic, University of Maribor, Faculty of Tourism and EIPF, Institute of Economics Ltd., Slovenia

Borut Vojinović: PhD in Economics, Associate Professor, University of Maribor, Faculty of Tourism and EIPF, Institute of Economics Ltd., Ljubljana. His research interests are: Economics, Macroeconomics, International Economics and Tourism. He is an author of several research papers published in different scientific journals and listed on https://orcid.org/0000-0002-6417-6166. He is also a member of Editorial Team at Lex localis, Journal of Local Self Government, an JCR listed journal. During his professional training he lectured at the several international universities.