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...
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Format: | Article |
Language: | English |
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Academica Brâncuşi
2024-12-01
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Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
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Online Access: | https://www.utgjiu.ro/revista/ec/pdf/2024-06,%20Volumul%20II/06_Dobrota.pdf |
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author | DOBROTĂ GABRIELA DAN NICOLETA POPA DANIELA |
author_facet | DOBROTĂ GABRIELA DAN NICOLETA POPA DANIELA |
author_sort | DOBROTĂ GABRIELA |
collection | DOAJ |
description | 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. |
format | Article |
id | doaj-art-5740a0ea960741c3830613163241ad29 |
institution | Kabale University |
issn | 1844-7007 2344-3685 |
language | English |
publishDate | 2024-12-01 |
publisher | Academica Brâncuşi |
record_format | Article |
series | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
spelling | doaj-art-5740a0ea960741c3830613163241ad292025-01-03T15:26:18ZengAcademica BrâncuşiAnalele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie1844-70072344-36852024-12-01265762HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES DOBROTĂ GABRIELA 0DAN NICOLETA1POPA DANIELA2PHD, ,,CONSTANTIN BRÂNCUȘI” UNIVERSITY OF TARGU JIU ”LUCIAN BLAGA” UNIVERSITY OF SIBIU ”LUCIAN BLAGA” UNIVERSITY OF SIBIU 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. https://www.utgjiu.ro/revista/ec/pdf/2024-06,%20Volumul%20II/06_Dobrota.pdffiscal policyprivate investmentsemerging marketsromaniaregression |
spellingShingle | DOBROTĂ GABRIELA DAN NICOLETA POPA DANIELA HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie fiscal policy private investments emerging markets romania regression |
title | HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES |
title_full | HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES |
title_fullStr | HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES |
title_full_unstemmed | HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES |
title_short | HOW TAX POLICIES SHAPE INVESTMENT DECISIONS IN EMERGING ECONOMIES |
title_sort | how tax policies shape investment decisions in emerging economies |
topic | fiscal policy private investments emerging markets romania regression |
url | https://www.utgjiu.ro/revista/ec/pdf/2024-06,%20Volumul%20II/06_Dobrota.pdf |
work_keys_str_mv | AT dobrotagabriela howtaxpoliciesshapeinvestmentdecisionsinemergingeconomies AT dannicoleta howtaxpoliciesshapeinvestmentdecisionsinemergingeconomies AT popadaniela howtaxpoliciesshapeinvestmentdecisionsinemergingeconomies |