International economic integration and fiscal policy effectiveness

Maria Cláudia Macedo Veiga Dias

Student thesis: Master thesis


The present thesis is devoted to the study of international economic integration and fiscal policy effectiveness, topics which are increasingly relevant, especially due to the observed propagation of events such as the US subprime mortgage crisis and the European sovereign debt crises. In order to provide a strong contribution to diminish and fight such propagations, it is necessary to clearly understand the dimensions of the above two concepts. For that purpose, the analysis is carried out based on the examination of the coefficients of 12 time-series multivariate models that arise from the investigation in Østrup (2003). The econometric cointegration techniques applied to these models, allow for accurate interpretations and conclusions on the key topics of this thesis. The findings suggest no significant evidence of international economic integration, pointing out at the same time towards a significantly effective fiscal policy when applied by the authorities. Moreover, the obtained results imply no tendencies, neither on international economic integration, nor on the fiscal policy effectiveness.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2011
Number of pages2011