Public Investment, Growth And Fiscal Constraints - Challenges for the EU New Member States

This book makes a unique contribution in advancing understanding of the fiscal condition and growth potential of the New Member States of the European Union. It provides new data, policy evaluation, and offers national and regional perspectives. The core research questions are the effect of public investment in the context of macroeconomic disequilibrium and how it is possible to finance capital accumulation in the present and future conditions of mounting public sector debt. The contributors reveal that there is now a convincing case for public investment as an essential driver of convergence and growth in Europe. However, a new international and inter-generational fiscal pact to frame a more optimistic view of the role of government is needed. This book explores how public investment matters for growth, how fiscal conditions may support investment, and the role EU regional policy can have in terms of structural change and investment needs. Public Investment, Growth and Fiscal Constraints provides new data analyses on the EU New Member States in Central and Eastern Europe making it an essential tool for academics, students and practitioners interested in public finance and European Economics. The structural and public finance issues in these former transition economies raised in this book will also strongly appeal to policymakers, officials and consultants. The book is based on an independent research project of the University of Milan, supported by the European Investment Bank.

Introduction: Public Investment, Growth and Fiscal Constraints in the EU M. Florio PART I: PUBLIC INVESTMENT AND GROWTH: CONCEPTUAL FRAMEWORK 1. Budget Deficits, Public Debt and the Level of Public Investment M. Sawyer 2. Recent Advances in Public Investment, Fiscal Policy and Growth C. Del Bo 3. Public Investment under Disequilibrium: A Post Keynesian Viewpoint M.Cingolani PART II: PUBLIC INVESTMENT AND FISCAL CONDITIONS IN THE EU NEW MEMBER STATES 4. Patterns and Trends of Public Investment in the New Member States of the European Union A. Catalina 5. EU New Member Countries: Public Sector Accounts and Convergence Criteria G. Bognetti and G. Ragazzi 6. Public Investment and Growth in the EU New Member States: An Overview J. Hanousek and E. Kocenda PART III: INVESTMENT, STRUCTURAL CHANGE AND REGIONAL POLICY 7. Structural Change in New Member States (1995–2005). Shift-Share Analysis of Productivity Growth and its Determinants A. Parteka 8. Structural Funds Business Support and Employment Growth in Manufacturing: Perspectives for the New Member States L. Moretti 9. Infrastructure Investment Opportunities in the EU New Member States: The Role of Regional Policies E. Sirtori and S.Vignetti