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349497

The Impact of Fiscal Policy on Private Consumption in Egypt

Article

Last updated: 24 Dec 2024

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الأقتصاد

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.

DOI

10.21608/jces.2024.349497

Keywords

private consumption, Fiscal policy, Taxation, Government expenditure, GGM

Authors

First Name

Rasha

Last Name

M. Elakkad

MiddleName

-

Affiliation

Assistant Professor of Economics, Faculty of Commerce and Business Administration, Helwan University, Cairo, Egypt

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City

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Orcid

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Volume

15

Article Issue

1

Related Issue

46299

Issue Date

2024-01-01

Receive Date

2024-03-01

Publish Date

2024-03-30

Page Start

359

Page End

382

Print ISSN

2090-3782

Link

https://jces.journals.ekb.eg/article_349497.html

Detail API

https://jces.journals.ekb.eg/service?article_code=349497

Order

33

Type

المقالة الأصلية

Type Code

986

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات التجارية والبيئية

Publication Link

https://jces.journals.ekb.eg/

MainTitle

The Impact of Fiscal Policy on Private Consumption in Egypt

Details

Type

Article

Created At

24 Dec 2024