Taxation for Sustainable Economic Growth: Balancing Fiscal Regulation and Knowledge Advancement
Oana-Ramona LOBONT – Andreea-Florentina CRĂCIUN – Alesia LOBONT – Sorana VĂTAVU – Ana-Cristina NICOLESCU
https://doi.org/10.18267/pr.2026.vol.2587.20
Abstract: Taxation plays a key role in economic growth, yet its effects on sustainable development remain debated. This study examines how fiscal regulation influences economic development through the lens of public debt sustainability. A multidimensional framework combines a bibliometric analysis of 374 articles (1995–2026) with threshold modelling based on a Fiscal Rules Index (FRI) for EU-27 Member States (1990–2024). The findings reveal a nonlinear relationship: taxation contributes positively to economic growth across all regimes, but its effectiveness varies substantially depending on the intensity of fiscal regulation. The results obtained emphasize the idea that fiscal policies alone cannot ensure growth, but rather serve as mechanisms that modify the intensity and meaning of the effects of macroeconomic variables that contribute to growth. The estimated model indicates significant threshold effects associated with fiscal policy adjustments and structural changes in response to economic pressure. Also, the results highlight the need to enhance the efficiency and flexibility of fiscal rules through simplified implementation and monitoring, and emphasize broader geographical representation in research.
Keywords: Fiscal Rule Index, sustainable economic growth, bibliometric analysis, threshold analysis, fiscal regulation, European Union
JEL Classification codes: E62, C23, O47
Fulltext: PDF
Published by: Prague University of Economics and Business, Oeconomica Publishing House
Year of publication: 2026
Online publication date: 20 May 2026
Copyright: Authors of the papers
ISBN 978-80-245-2587-7
ISSN 2453-6113
Pages 234-252