The Impact of Public Finance Management on Sustainable Development and Competitiveness in EU Member States
Marta Postula, Konrad Raczkowski
Klíčová slova
public finance management, sustainable development, public expenditure, Maastricht deficit criterion,
competitiveness
Abstrakt:
The social and economic policy pursued by national and European authorities is supported by
the redistribution of public funds. Choices made by European member states regarding the relevant
scale of redistribution should promote the individual nation’s sustainable development and
competitiveness. Increased capital and workforce flows strengthen so-called fiscal and spending
competition, which weakens governments’ capacity for running an autonomous fiscal policy. In
EU countries, however, there are still quite significant differences between the basic parameters
of fiscal and spending systems, indicating that governments are not as powerless as is often
claimed. Further, the fact that elements of fiscal policy have consequences for a country’s competitiveness
should not be overlooked. Keeping this in mind, the main purpose of this article is
to examine to what extent EU member states’ public spending can have a real impact on changing
performance indicators for goals related to competitiveness and sustainable development.
To this end, an approach based on panel models (individual vs. random effects) verified with
a Hausman specification test was used. Our findings demonstrate the significant impact of an
active spending policy on the indicators selected for analysis, i.e. indicators related to the stable
development and competitiveness of EU member states within the period of 2008–2018. Our
research results have also shown that to measure competitiveness there is a need to integrate a
number of varied economic, social and innovative factors to analyze the growth potential of a
particular country. In turn, our model studies demonstrate that countries where the fiscal deficit
is below 3% of GDP can implement a sustainable development policy more effectively, thus
promoting competitiveness, instead of the periodic shocks and budget cuts which accompany
remedial processes and procedures to alleviate excessive deficits.
Celý článek ke stažení:
 The Impact of Public Finance Management on Sustainable Development and Competitiveness in EU Member States [PDF soubor] [Velikost souboru: 561.65 KB]
 10.7441/joc.2020.01.08
Postula, M., & Raczkowski, K. (2020). The Impact of Public Finance Management on Sustainable
Development and Competitiveness in EU Member States. Journal of Competitiveness, 12(1), 125–144. https://doi.org/10.7441/joc.2020.01.08
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