Law Review International Journal of Law and Jurisprudence Online Semiannually Publication published by Union of Jurists of Romania and Universul Juridic Publishing House e-ISSN 2246-9435
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FINANCIAL INTEGRATION AND FISCAL POLICY, IMPLICATIONS ON ECONOMIC GROWTH

Paula Andreea TERINTE

 This paper analyses the relationship between financial integration and fiscal policy, bringing the

arguments which come to strengthen that in the context of financial integration, to influence
economic growth, it is also necessary a consolidation of fiscal policy, and the stability of public
finances. Basically, in our analysis, we want to build a research that stressed the importance of
interplay between the variables involved, with the objective of economic growth. Our results reveal
that there is a significant relationship between the three variables, namely financial integration, fiscal
policy and economic growth and the international financial integration has increased the importance
of financial sector policies. In addition, we find that financial integration affects the composition of
government debt and enhances risk-sharing by increasing the share of foreign debt to the total. So,
countries need strong macro-prudential policy frameworks. For our analysis, we retrieved data from
the Eurostat and World Bank, including the EU 28-member states over the 2000-2014 period.

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