TY - JOUR AU - Surugiu, Marius AU - Surugiu, Camelia AU - Mazilescu, Raluca AU - Cristea, Anca PY - 2021/02/01 Y2 - 2024/03/28 TI - Taxes, Expenditure and Development Nexus: A Panel VECM Analysis on Romanian NUTS2 Regions JF - European Journal of Sustainable Development JA - EJSD VL - 10 IS - 1 SE - DO - 10.14207/ejsd.2021.v10n1p599 UR - https://ojs.ecsdev.org/index.php/ejsd/article/view/1194 SP - 599 AB - <p>The investigation starts with the computation of the Socio-Economic Development Index (SEDI index) with data for Romania. Based on the index values, the long-run relationship between taxes and expenditure is assessed, for Romanian NUTS2 regions from 2000 to 2016. According to the results, there is a Granger causality relationship from budget revenue and expenditure to SEDI. The results emphasize the significant impact of taxes and expenditure on socio-economic development. The paper underlines the need for effective public strategies to be implemented by the authorities at the regional level, which may propel the socio-economic development. The results support the fiscal synchronization hypothesis.</p> ER -