International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Impact of Fiscal Space on Economic Growth in Egypt
Engy Raouf Abdel Fattah

Abstract
Fiscal space issue has been emerged with the development of the Millennium Development Goals. The main objective of this study is to examine the impact of fiscal space on economic growth in Egypt over the period from 1982 to 2015 using a vector autoregressive (VAR) model. The results of the empirical model confirmed that fiscal space has a positive impact on the growth rate in Egypt. This result has been verified by Granger causality test. It can be concluded that policy makers must focus on resource mobilization. Fiscal space resources must be mobilized carefully in order to avoid adverse impacts on the economy.

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