Skip to main content
SpringerLink
Log in

Revenue Oriented Fiscal Consolidation in the Function of Sustainable Growth

  • Conference paper
  • First Online:
Economic Recovery, Consolidation, and Sustainable Growth (ISCBE 2023)

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Included in the following conference series:

  • 108 Accesses

Abstract

In the aftermath of COVID-19 crisis, high inflation, the rise of public debt for more than 10% of GDP worldwide and energy crisis due to war in Ukraine, governments seem to have no other choice but fiscal consolidation. This paper aims to identify the composition of fiscal consolidation through interventions on the revenue side from the perspective of Kosovo. To achieve its aim, this study will employ structural vector autoregressive model to obtain results for the short-term period and will employ vector error correction model to obtain results for the long-term period. This paper concludes that the reforms in a possible fiscal consolidation in Kosovo should be oriented in personal income taxes and corporate income taxes.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Western Balkans 6 is a region in South East Europe made from Kosovo XK, North Macedonia MK, Albania AL, Serbia SRB, Montenegro MNE, Bosnia and Herzegovina BH.

References

  • Alesina, A., & Ardagna, S. (1998). Tales of fiscal adjustment. Economic Policy, 13(27), 487–545.

    Article  Google Scholar 

  • Alesina, A., & Ardagna, S. (2009). Large changes in fiscal policy: Taxes versus spending. National Bureau of Economic Research., 15438, 1–36.

    Google Scholar 

  • Alesina, A., & Ardagna, S. (2012). In J. R. Brown (Ed.), What makes fiscal adjustments successful? Forthcoming in tax policy and the economy, vol. 26.

    Google Scholar 

  • Alesina, A., Favero, C., & Giavazzi, F. (2019). Effects of austerity: Expenditure- and tax-based approaches. Journal of Economic Perspectives., 33(2), 141–162.

    Article  Google Scholar 

  • Alesina, A., Favero, C., & Giavazzi, F. (2019a). Austerity—When it works and when it doesn’t. Princeton University Press.

    Google Scholar 

  • Alesina, A., & Perotti, R. (1995). Fiscal expansions and fiscal adjustments in OECD countries. National Bureau of Economic Research., 5214, 1–38.

    Google Scholar 

  • Alesina, A., & Perotti, R. (1997). The welfare state and competitiveness. American Economic Review, 87, 347–366.

    Google Scholar 

  • Attinasi, M., Metelli, L. (2016). Is fiscal consolidation self-defeating? A panel-VAR analysis for the euro area countries. European Central Bank—Working Paper Series. No.1883 (pp. 1–50).

    Google Scholar 

  • Banerjee, R. (2014). An evaluation of the revenue side as a source of fiscal consolidation in high debt economies. Journal of Economic Studies, 41(6), 771–788.

    Article  Google Scholar 

  • Balasundharam, V., Basdevant, O., Benicio, D., Ceber, A., Kim, Y., Mazzone, L., Selim, H., Yang, Y. (2023). Fiscal consolidation: Taking stock of success factors, impact, and design. IMF Working Papers. 23(63), 1–39.

    Google Scholar 

  • Bexheti, A., Jovanovic, B., & Skrijelj, S. (2023). Danočen sistem za novo vreme. Makedonska Akademija na Naukite i Umetnostite (accepted paper).

    Google Scholar 

  • Bexheti, A., Bužarovski, S., Tevdovski, D., & Carovska, M. (2023b). Važnosta na ulogata na državata! Kako makedonskata ekonomija da stane pootporna na krizi?. Makedonska Akademija na Naukite i Umetnostite. (accepted paper).

    Google Scholar 

  • Blanchard, O., & Perotti, R. (2002). An empirical characterization of the dynamic effects of changes in government spending and taxes on output. The Quarterly Journal of Economics., 117(4), 1329–1368.

    Article  Google Scholar 

  • Bray, S., & Weigel, C. P. (2023). Tax Fairness Continues to Get in the Way of Energy Security. Tax Foundation. Available at: https://taxfoundation.org/windfall-profits-tax-eu-energy-security/.

  • Caldara, D., & Kamps, C. (2008). What are the effects of fiscal policy shocks? A VAR-based comparative analysis. European Central Bank Working Papers 877, 1–47.

    Google Scholar 

  • Cogan, J. F., Taylor, J. B., Wieland, V., & Wolters, M. H. (2013). Fiscal consolidation strategy. Journal of Economic Dynamics and Control, 37, 404–421.

    Article  Google Scholar 

  • Cournede, B., Goujard, A., & Pina, A. (2014). Reconciling fiscal consolidation with growth and equity. OECD Journal: Economic Studies, 2013(1), 1–89.

    Google Scholar 

  • Disha, B., Pijls, N., Jupolli, M., Verbani, F., Mustafa, G. (2012). 17 Menyra per te rritur te hyrat nga tatimi ne prone. Helvetas Kosovo. Available at: http://helvetas-ks.org/wp/wp-content/uploads/2011/10/Alb_-_17_Ways_to_Increase_your_Property_Tax_Rev.

  • Dixit, A. K., & Nalebuff, B. J. (2008). The art of strategy. W.W. Norton and Company Inc.

    Google Scholar 

  • Gaffney, M. (2009). The hidden taxable capacity of land: Enough and to spare. International Journal of Social Economics, 36(4), 328–411.

    Article  Google Scholar 

  • Giavazzi, F., Jappelli, T., & Pagano, M. (2000). Searching for non-linear effects of fiscal policy: Evidence from industrial and developing countries. European Economic Review, 44(7), 1259–1289.

    Article  Google Scholar 

  • Giavazzi, F., & Pagano, M. (1990). Can severe fiscal contractions be expansionary? Tales of two small European countries. National Bureau of Economic Research, 5, 75–122.

    Google Scholar 

  • Keynes, J. M. (1936 - eBOOK 2003). The general theory of employment, interest and money. Project Gutenberg of Australia eBook.

    Google Scholar 

  • Lacalle, D. (2021). Increasing taxes or spending cuts: What is more effective for fiscal consolidation? Journal of New Finance., 2(2), 1–29.

    Article  Google Scholar 

  • Levizja, FOL. (2014). Tatimi ne prone—sfide per komunat. Levizja FOL Available at: https://levizjafol.org/tatimi-ne-prone-sfide-per-komunat/.

  • Marattin, L., Nannicini, T., & Porcelli, F. (2021). Revenue vs expenditure based fiscal consolidation: The pass-through from federal cuts to local taxes. International Tax and Public Finance, 29, 834–872.

    Article  Google Scholar 

  • Maebayashi, N. (2023). The pace of fiscal consolidations, fiscal sustainability, and welfare: An overlapping generations approach. Journal of Macroeconomics. 75–103485.

    Google Scholar 

  • Ministry of Finances Labour and Transfers of Kosovo—Quarterly Reports (2008–2022) - https://mf.rks-gov.net/page.aspx?id=1,29.

  • Molnar, M. (2013). Fiscal consolidation: What factors determine the success of consolidation efforts? OECD Journal: Economic Studies, 2012(1), 123–149.

    Google Scholar 

  • Papadamou, S., & Tzivinikos, T. (2017). The macroeconomic effects of fiscal consolidation policies in Greece. Journal of Financial Economic Policy, 9(1), 34–49.

    Article  Google Scholar 

  • Pereira, A., & Roca-Sagalés, O. (2011). Long-term effects of fiscal policies in Portugal. Journal of Economic Studies, 38(1), 114–127.

    Article  Google Scholar 

  • Perotti, R. (2004). Estimating the effects of fiscal policy in OECD countries. GIER Working Paper No. 276. No. 276, pp. 1–60.

    Google Scholar 

  • Okwuokei, J. (2014). Fiscal consolidation: Country experiences and lessons from the empirical literature. IMF, International Monetary Fund, 103–131.

    Google Scholar 

  • Radoniqi, U., & Bexheti, A. (2023). Maintaining sustainable public finances: The role of fiscal consolidation. Economic Alternatives (accepted paper).

    Google Scholar 

  • Radoniqi, U., & Bexheti, A. (2022). Options for fiscal consolidation in western Balkans 6. In 36th international public finance conference “fiscal policies and inflation” (p. 264).

    Google Scholar 

  • Radoniqi, U., & Konxheli, D. (2020). COVID‐19 infection curve flattens, now getting into the monetary policy changes. Annals of “Dunarea de Jos” University of Galati Fascicle I. Economics and Applied Informatics. Years XXVI (no1/2020), 134–140.

    Google Scholar 

  • Rexha, D., Bexheti, A., & Ukshini, K. (2021). Impact of the fiscal policy on economic growth: An analytical approach from the Republic of Kosovo. International Journal of Public Sector Performance Management., 7(4), 534–547.

    Article  Google Scholar 

  • Stoilova, D. (2017). Tax structure and economic growth: Evidence from the European Union. Contaduría y Administración, 62(3), 1041–1057.

    Article  Google Scholar 

  • Stoilova, D., & Patonov, N. (2013). An empirical evidence for the impact of taxation on economy growth in the European Union. Tourism and Management Studies., 3, 1030–1039.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Business and Economics, South East European University, Tetovo, North Macedonia

    Uran Radoniqi, Abdylmenaf Bexheti & Liridona Lutfiu Seferi

Authors
  1. Uran Radoniqi
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Abdylmenaf Bexheti
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Liridona Lutfiu Seferi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Uran Radoniqi .

Editor information

Editors and Affiliations

  1. Faculty of Business and Economics, South East European University, Tetovo, North Macedonia

    Abdylmenaf Bexheti

  2. Faculty of Business and Economics, South East European University, Tetovo, North Macedonia

    Hyrije Abazi-Alili

  3. Ecole de Commerce Paris—ICD Business School, Groupe IGS, Paris, France

    Léo-Paul Dana

  4. Faculty of Business and Economics, South East European University, Tetovo, North Macedonia

    Veland Ramadani

  5. Department of Economics and Management, University of Trento, Trento, Italy

    Andrea Caputo

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Radoniqi, U., Bexheti, A., Seferi, L.L. (2023). Revenue Oriented Fiscal Consolidation in the Function of Sustainable Growth. In: Bexheti, A., Abazi-Alili, H., Dana, LP., Ramadani, V., Caputo, A. (eds) Economic Recovery, Consolidation, and Sustainable Growth. ISCBE 2023. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-42511-0_7

Download citation

Publish with us

Policies and ethics

Search

Navigation