| Abstract [eng] |
53 pages, 8 tables, 7 pictures, 29 references. The main purpose of this master thesis is to examine the impact of government expenditures on economic growth. The work consists of three main parts: literature analysis, the research methodology and research results. First of all, literature analysis reviews the role of state institutions providing public services and the concept of the state budget and its importance. Also, this part analyzes government expenditures structure, recent scientific research on how government expenditures affects the economic growth in different countries. After the literature analysis research design was set up, research period, countries, methods and variables were selected. The main objective of empirical research was to identify whether the economic growth of the euro zone countries is affected by structural government expenditures in period 2013-2021. The research consisted of three parts: dynamic, structural data analysis and regression analysis. The dependent variable is economic growth measured by real GDP growth rate and independent variables are structural government expenditures which classification was chosen based on the Eurostat database. The results of the research show that expenditures on social protection, education, public order and safty has negative effect on euro zone countries economic growth, government expenditures on general public services, environmental protection, health, housing and community amenities has positive effect. There were some government expenditures that did not make impact – expenditures on recreation, culture and religion, defence and economic affairs. Conclusions are made in response to each task of the master‘s thesis. Recommendations are written based on the empirical research results. The author believes that the results of the master‘s thesis allows to make conclusions about which sectors should be financed more from the state budget to achieve long-term economic growth in euro zone. |
