Fiscal and Monetary Policies for Inclusive Growth in Developing and Emerging Markets

Authors

• Collins Anosike, Edward Waters University, Jacksonville, FloridaFollow

Document Type

Article

Abstract

The study examined the effects of monetary and fiscal policies in attaining inclusive growth for some developing countries and emerging markets. The study selected 20 countries and grouped them into group one and group two. The study is unique because it captures a broader range of countries compared to previous studies and shows their effect on economic growth. We use panel data and employ OLS regression and Johansen cointegration. We examine how each variable, general government expenditure, gross national expenditure, total revenue, official exchange rate, broad money, and deposit interest rate, affects the dependent variable (real GDP) from 1980 to 2023. A different panel data regression was estimated to capture the effect on growth using all countries. Some of the variables in the fiscal model were significant, and some of the variables in the monetary model were also significant. The cointegration test reveals a prominent level of cointegration among the variables. The findings reveal that fiscal policy exerts more effect than monetary policy on economic growth for the 43-year period examined. The study recommends more policies that coordinate monetary and fiscal policies and push more spending on productive activities.

Recommended Citation

Anosike, Collins (2026) "Fiscal and Monetary Policies for Inclusive Growth in Developing and Emerging Markets," Journal of Global Awareness: Vol. 7: No. 1, Article 8.
Available at: https://scholar.stjohns.edu/jga/vol7/iss1/8