FISCAL POLICY PERFORMANCE ASSESSMENT IN THE CONTEXT OF NATIONAL COMPETITIVENESS, CASES OF EU COUNTRIES
Keywords:indicators of the development, GCI, HDI, growth of economy, taxes, GDP
AbstractThe article deals with problematic issues of economic competitiveness in the context of the EU. Fiscal policy and competitiveness as the world emerges from the global recession, the full extent of the deterioration of fiscal accounts is becoming visible and is raising questions about the consequences for longer-term competitiveness. Upon characterizing the tendencies of economic growth the most often used indicator is GDP per capita. Developing research in a similar direction and characterizing the tendencies of formation of the structure of new socioeconomic indicators to describe economic growth was carried out. In this case GDP per capita (growth) is far from a robust indicator of social welfare (progress)–witness the common substituting phrase “standard of living”. Countries with developed economics have much experience with respect to formation of business-friendly tax systems. The tax system (fiscal policy) is one of the most basic economic mechanisms determining the economic development. Finally, it could be shown that the correlation coefficients between the rankings of GCI, HDI and livings standards are high and positive.