Social Expenditure Multiplier: Assessment of Economic Effect and Optimal Values

• Autorzy: Halyna Yurchyk , Halyna Mishchuk , Svitlana Bilan , Marinko Skare
• Języki publikacji: EN

Abstrakty

EN

The main aim of the study is to test the hypothesis that social expenditures are not only a source of social support and budgeting of the social sphere, but can be a significant lever of economic development, provided proper planning of their share and volume. In this regard, the authors have adapted the open-economy multiplier to assess the economic effect of social expenditures. Based on the correlation analysis of the relationship between the share of social expenditures (% of GDP) and the multiplier of social expenditures, conducted on the example of EU countries, two groups of countries are identified depending on the impact of social expenditure multiplier on GDP: the first one embraces those countries that are characterized by a growing economic return from social expenditures; the second one is where the return is declining. To determine the optimal levels of social expenditures, which can be expected to have a positive economic effect in the form of GDP growth, we have identified critical limits of the multiplier of social expenditures according to the principle: the maximum value is seen in the group of countries with positive impact; the minimal one is experienced in countries with inverse dependence of the share of social expenditures and their multiplier. As a result, the experience of financing social expenditures in the EU leads to the conclusion that the optimal share of social expenditures in GDP ranges from 28% to 30% - within these limits multiplier values exceed 1.0, i.e. there is a positive impact of social expenditures on GDP in the form of the growth of economic results over the resources consumed. (original abstract)

Słowa kluczowe

EN

Social expenditures; Gross domestic product (GDP); Open economy

PL

Wydatki socjalne; Produkt krajowy brutto (PKB); Gospodarka otwarta

• Czasopismo: Economics & Sociology
• Rocznik: 2024
• Tom: 17
• Numer: nr 1
• Strony: 182--195

Twórcy

autor

Halyna Yurchyk

• National University of Water and Environmental Engineering, Rivne, Ukraine

autor

Halyna Mishchuk

• Széchenyi Istvàn University, Győr, Hungary

autor

Svitlana Bilan

• Rzeszow University of Technology, Poland

autor

Marinko Skare

• Juraj Dobrila University of Pula, Croatia

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Identyfikatory

DOI

10.14254/2071-789X.2024/17-1/12