Marko Senekovič
- University of Maribor, Faculty of Economics and Business, Razlagova 14, 2000 Maribor, Slovenia
Jani Bekő
Abstract:
This chapter has two main objectives: first, to evaluate the impact of fiscal spending on economic activity across a broad sample of 47 countries, and second, to examine how economic inequality and tourism dependence shape the size of fiscal multipliers. To achieve these goals, a time series VAR model and a panel VAR model are employed, utilizing a dataset covering the period 1995-2021. The key findings of our empirical analysis are as follows. First, fiscal multipliers are predominantly positive in 31 countries. Second, the average fiscal multiplier is higher in countries that rely more heavily on tourism. Third, countries with more pronounced income and wealth inequality tend to exhibit larger fiscal multipliers, with the effect of wealth inequality being particularly pronounced in tourism-oriented economies. These findings support the hypothesis that greater economic inequality amplifies the effects of government spending, both generally and in the case of countries with a stronger reliance on tourism.
9th International Thematic Monograph: Modern Management Tools and Economy of Tourism Sector in Present Era - 9th International Thematic Monograph: Modern Management Tools and Economy of Tourism Sector in Present Era
Published by: Association of Economists and Managers of the Balkans; Faculty of Tourism and Hospitality, Ohrid, North Macedonia
ISBN: 9788680194943 , ISSN: 26835673 , DOI: 10.31410/tmt.2024-2025
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