The Impact of Fiscal Policy on Private Consumption in Egypt | ||||
| المجلة العلمية للدراسات التجارية والبيئية | ||||
| Article 32, Volume 15, Issue 1, January 2024, Page 359-382 PDF (655.94 K) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/jces.2024.349497 | ||||
 View on SCiNiTO | ||||
| Author | ||||
| Rasha M. Elakkad* | ||||
| Assistant Professor of Economics, Faculty of Commerce and Business Administration, Helwan University, Cairo, Egypt | ||||
| Abstract | ||||
| The Egyptian economy has been passing through several political and social incidents that necessitate choosing the appropriate fiscal and monetary policies. These economic fluctuations can be partially explained by the high share of private consumption from GDP. Thus, the impact of fiscal policy depends on how consumers respond to government actions. The study in hand applied the Generalized Method of Moments (GMM) to test the impact of fiscal policy indicators, namely public expenditure, government consumption, spending on health, spending on education, spending on social protection, revenues from direct taxation and revenues from indirect taxation on private consumption, proxied by per-capita private consumption in Egypt over the period from 1975 to 2022. The study reached three basic results: government expenditure has a negative effect on private consumption; per-capita national income is the most impactful variable on fiscal policy; during normal economic conditions, there is a positive relation between taxation and government consumption, whereas, during huge economic changes, the relation turns negative. | ||||
| Keywords | ||||
| private consumption; fiscal policy; taxation; government expenditure; GGM | ||||
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