JULES RESEARCH PAPER

My book focuses on fiscal policy on economic growth, I have used fiscal policy components to expain their relationship with GDP.Fiscal policy is a government tool that significantly fosters economic growth in terms of different economic activities like the financing of infrastructure sector, investment, expenditure and economic development such as human development through a number of different channels such as c macro-economic channels through the influence of the budget deficit on growth and the microeconomic channels through its influence on the efficiency of resource use. The effect of fiscal policy on economic growth using fiscal policy components has not been clearly established. However, most studies have explored the relationship between other macroeconomic factors such as inflation rate, foreign aid, and private consumption (Remmer, 2004) where mostly, the findings revealed that a significant relationship among the stated variables. Also, a number of studies have tested fiscal policy and economic growth (M'Amanja & Morrisey, 2005; Semmler et al., 2007) with the general findings showing that fiscal policy would affect economic growth.