Alterations In Macro-Fiscal Balances In G7 Countries And Their Cointegration Scales Impact On Economic Growth

Abstract

This study aims to examine the financial balances among the G-7 countries, especially developed countries, with a panel data model as a change process and to reveal possible panel effect values on economic growth trends. Especially from the perspective of macroeconomic balances, the macro-fiscal balances of the G7 countries have recently entered a period of significant negative change, with the economies being negatively affected and the structure frequently bringing stable growth problems to the agenda. Therefore, mainly when macroeconomic imbalances exist, and these balances are evaluated based on Gross Domestic Product (GDP), it is also critical to emphasize the medium and long-term balance relationship of macroeconomic balances, especially with cointegration panel data analysis. More importantly, the relationship between the changes in the fiscal balances in question-based on these countries and economic growth reveals that it makes sense for a process in which primary budget deficits are also in question due to public expenditure effects on budget revenue-expenditure balances.  It also expresses the significance of a structural economic change process in which the current account deficit process, which creates macro-financial impact values, directly affects the determinations on a GDP basis in the relevant period we take as a basis. With an integrated approach, it is also understood that these determinations provide a basis for determining the dynamics of the correlations between fiscal stability performances and economic growth in the context of G7 countries. These are accepted as critiques and practical dynamics determined to promote stability and create effective strategies for G7 countries intended to catch the aimed fiscal balances that affect economic growth objectives. It is also understood that this phenomenon means creating a process of decisions based on a macroeconomic change process and growth targets for economic expansion, with a set of factors including economic and political preferences in the global economic environment.