Economic Archive

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  MEASURING THE IMPACT OF FISCAL POLICY ON THE ECONOMIC GROWTH OF ARMENIA

  The key objective of macroeconomic regulation is to achieve sustainable economic growth and development in the long term. At the same time, within developing economies, the task of ensuring sustainable economic growth in the long term faces the failure of institutions, and as a result, the ineffectiveness of the main mechanisms of macroeconomic ... The key objective of macroeconomic regulation is to achieve sustainable economic growth and development in the long term. At the same time, within developing economies, the task of ensuring sustainable economic growth in the long term faces the failure of institutions, and as a result, the ineffectiveness of the main mechanisms of macroeconomic regulation, especially those that have a long-term and ambiguous impact on the economy. The purpose of the study was to assess the impact of fiscal policy on economic growth, as well as to find fundamental common ground for increasing the impact of basic instruments on economic activity by improving transmission mechanisms. The methodological basis of the study was a review of theoretical and practical models of the fiscal regulation impact on economic growth, known in the scientific literature, as well as approbation of the most optimal ones considered using the example of the Armenian economy. The result of the study was the conclusion that in the current format, the fiscal policy of Armenia does not have the proper positive impact on the rate of economic growth, and therefore requires a fundamental revision and the need to develop an appropriate strategy aimed at ensuring sustainable economic growth in the long term.

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  PROMOTING THE PARTICIPATION OF SMEs IN DUAL TRAINING IN THE CONTEXT OF REGIONAL DISPARITIES IN BULGARIA

  The aim of the paper is to make recommendations for the development of the dual system in Bulgaria in terms of increasing the participation of SMEs and taking into account the regional specificities of the educational structure of the population and youth unemployment. Financial incentives, a large-scale information campaign and visibility of ... The aim of the paper is to make recommendations for the development of the dual system in Bulgaria in terms of increasing the participation of SMEs and taking into account the regional specificities of the educational structure of the population and youth unemployment. Financial incentives, a large-scale information campaign and visibility of participating enterprises are some of the important factors to encourage SMEs to become partners in the dual system. In order to ensure a wider participation of enter¬prises, it is important to gradually increase financial incentives (through support in the form of grants, tax relief, etc.). The existing differences between regions in Bulgaria suggest that a more substantial incentive for SMEs to become partners in dual training could be achieved by applying a regional criterion. When planning measures for the development of the dual training system in Bulgaria, efforts should be made to cover more persons at risk of dropping out of the education system and persons who will not enter higher education.

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  THE SHADOW ECONOMY AND TAX EVASION – BEHAVIORAL ATTITUDES AND COUNTERMEASURES

  Taxation, corruption, excessive regulations, and ineffective governance stand out as primary drivers behind the emergence of the "shadow economy" (also known as the "grey," "informal," or "unregistered" economy). The prevailing theoretical models suggest that these variables are closely inter¬related and can lead to either a positive or negative ... Taxation, corruption, excessive regulations, and ineffective governance stand out as primary drivers behind the emergence of the "shadow economy" (also known as the "grey," "informal," or "unregistered" economy). The prevailing theoretical models suggest that these variables are closely inter¬related and can lead to either a positive or negative balance. The positive balance is characterized by stable institutions, light regulatory burdens, a broad tax base, often high taxes and revenues, and a small size of the shadow economy. Conversely, the negative balance involves unstable institutions, excessive and burdensome regulation, diverse tax bases, low revenues, and a significant size of the shadow economy. The larger the tax wedge (the difference between the total labour cost and income after taxation), the larger the informal economy becomes. The aim of this study is to present the results of an empirical field research on employer and employee attitudes toward the shadow economy, along with a discussion of effective measures to limit the "grey sector."