ON THE ISSUE OF DETERMINING THE SIZE OF THE PUBLIC SECTOR OF THE ECONOMY

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

  Besik Bolkvadze

Abstract

One of the most pressing problems of modern economic science in a mixed economy is the definition and calculation of the size of the market and non-market (state, public, government) sectors. The calculation of the scale of the non-market sector is of fundamental importance in view of the following factors: it allows to easily distinguish the public sector from the market sector from the analytical point of view (statistical significance); promotes the development and implementation of effective state budget policy (fiscal importance); promotes the rational use of state property and the effective functioning of state-owned enterprises (asset management importance); enables the analysis of the impact on the economic growth of the sector and the adoption of sound economic decisions (macroeconomic importance). It should be noted that in modern conditions, various indicators are used to measure the size of the public sector of the economy, which have both theoretical and empirical significance, but due to their specificity are not homogeneous economic indicators and are characterized by understanding the size of the sector in different aspects. This paper reviews and analyzes these indicators and proposes a rather complex approach to calculating the public sector of the economy, which is fundamentally important for a comprehensive analysis and relevance of the sector's impact on economic growth.

How to Cite

Bolkvadze, B. (2022). ON THE ISSUE OF DETERMINING THE SIZE OF THE PUBLIC SECTOR OF THE ECONOMY. Three Seas Economic Journal, 3(3), 10-14. https://doi.org/10.30525/2661-5150/2022-3-2
Article views: 35 | PDF Downloads: 32

##plugins.themes.bootstrap3.article.details##

Keywords

Gross Domestic Product (GDP), economy and state, private and public sector, public sector indicators

References

Afonso, A., & Furceri, D. (2010). Government Size, Composition, Volatility and Economic Growth. European Journal of Political Economy. № 26.

Anisimov, A. (1995). Adaptation of Economic Structure to the Market Requirements. The Russian Economic Journal. № 2. (in Russian)

Azrilian, A. N. (Ed.) (1998). Big Economic Dictionary. The Third Edition. Moskow. Institute of New Economy. (in Russian)

Chamber of Control of Georgia [CCG]. (2004). 2003 Year’s Report about the Georgian State Budget Fulfillment Concerned with Government Report. Tbilisi.

Gogokhia, R. (1996). Market Economy. Tbilisi. ''Saqprofgami”.

Gupta, S., Leruth, L., Mello, L., & Chakravarti, S. (2001). Transition Economies: How Appropriate is the Size and Scope of Government? IMF Working Paper. International Monetary Fund. Available at: https://www.imf.org/external/pubs/ft/wp/2001/wp0155.pdf

Gusen, J. S. (1997). Government Size and Economic Growth in Developing Countries: A Political-Economy Framework. Journal of Macroeconomics. Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.461.8553&rep=rep1&type=pdf

Häge, F. M. (2003). Determinants of Government Size: The Capacity for Partisan Policy under Political Constraints. Department of Politics and Management. University of Konstanz. Available at: https://d-nb.info/1079554270/34

Hillman, A. L. (2003). Public Finance and Public Policy: Responsibilities and Limitations of Government. “Cambridge University Press”.

Kahn, J. (2011). Can We Determine the Optimal Size of Government? Center for Global Liberty and Prosperity. Development Policy Briefing Paper. №7. Available at: https://www.cato.org/sites/cato.org/files/pubs/pdf/dbp7.pdf

Khodov, F. G. (1997). Fundamentals of the State Economic Policy. Saint Peterburg. “Pnevma”. (in Russian)

Klumph, R. (2013). Economic Policy: Purposes, Instruments and Institutions. Translated from German into Georgian. “Ivane Javakhishvili Tbilisi State University”.

Matteo, L. D. (2013). Measuring Government in the Twenty-first Century: An International Overview of the Size and Efficiency of Public Spending. Fraser Institute. Available at: https://www.fraserinstitute.org/sites/default/files/measuring-government-in-the-21st-century.pdf

Ministry of Finance of Georgia [MOF]. (2018). State Budget Performance Reports. Available at: https://mof.ge/5117

Morozov, T. G. (Ed.) (2006). State Economic Policy. Moskow. IUNITI. (in Russian)

National Statistics Office of Georgia [GEOSTAT] (2018). National Accounts. Gross Domestic Product. Employment. Business Sector. Available at: https://www.geostat.ge/ka/modules/categories/23/mtliani-shida-produkti-mshp; https://www.geostat.ge/ka/modules/categories/38/dasakmeba-da-umushevroba; https://www.geostat.ge/media/28061/Business-sector-2018.pdf

Roland. G. (Ed.) (2008). Privatization: Successes and Faiilures. New York. “Columbia University Press”.

Tanzi, V. (2011). Government Versus Market: The Changing Role of the State. New York. “Cambridge University Press”.