The impact of fiscal policy volatility on economic growth: A study of OECD countries


Authors

  • Pham Van Nghia National Economics University
  • Pham The Anh National Economics University
DOI: https://doi.org/10.57110/vnu-jeb.v5i5.444

Keywords:

Economic growth, volatility, government expenditure, OECD

Abstract

This study examines the relationship between volatility and long-term economic growth across 30 OECD countries from 2000 to 2019. Our empirical findings indicate a positive relationship between volatility and long-term growth. However, this relationship is moderated by the scale of government expenditure: when government size becomes excessively large, the impact of fiscal policy volatility tends to shift from positive to negative. Additionally, the study reveals that investment, human capital, and trade openness positively influence economic growth, while inflation and initial GDP have a negative impact.

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25-10-2025

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Pham Van Nghia, & Pham The Anh. (2025). The impact of fiscal policy volatility on economic growth: A study of OECD countries. VNU JOURNAL OF ECONOMICS AND BUSINESS, 5(5), 1. https://doi.org/10.57110/vnu-jeb.v5i5.444

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