تحليل وقياس فاعلية أدوات السياسة المالية في النمو الاقتصادي بليبيا

Abstract

This study aims to analyze and measure the effectiveness of fiscal policy in achieving economic growth in the Libyan economy from 1980 to 2023. Using annual data, two methodologies were employed. Firstly, a descriptive method based on theories was used to extrapolate and track findings from the literature, studies, and applied research related to the subject. Secondly, an econometric method was applied, which included the Unit Root Test, Johansen cointegration tests, and the Vector Error Correction Model. Additionally, tests were conducted to evaluate and measure the quality of the performance of the estimated model. Finally, the study concluded that the economic growth has been negatively affected by changes in the amount of government spending—both current and developmental—over the long and short term. Furthermore, the positive effectiveness of direct and indirect taxes in enhancing the economic growth was found to be limited to the long term only.