The Impact of the Government Revenues and Expenditures on the Economic Growth

The purpose of this study is to analyze the impact of the government revenues and government expenditures on the economic growth in Romania, over the period 1998q1 - 2014q1. I use Granger causality test through cointegrated vector autoregression (VAR) methods to determine whether government revenues have or not a more influent role than government expenditures on controlling economy. This is an important aspect to analyze due to the fact that the state uses as a controlling economy instrument the fiscal policy.