This article aims to provide direct empirical evidence on business cycle relations between government spending and economic growth in the czech republic government spending plays an important role in a fiscal policy as a possible automatic stabilizer we analyzed annual data on government spending in compliance. First, we study the long run relationship between gdp and government expenditure in their various forms we find the existence of long run relationship between gdp and government expenditure second, we perform augmented granger causality tests between the growth rates of two sets of the variables here, we do not. Notable recommendations include, proper management of capital and recurrent expenditure, proper surveillance and quantification of capital spending in order to boost social and human capital, and development of sound institutions void of political influences keywords: government expenditure, economic growth,. Government expenditure and economic development: empirical evidence from nigeria muritala, taiwo and taiwo, abayomi (2011): government expenditure and economic development: empirical evidence from nigeria published in: european journal of business and management , vol vol 3, no. Autumn 2017/number 83 241 relationship between government expenditure and economic growth in transition countries: case of kyrgyzstan and tajikistan raziiakhan abdieva damira baigonushova junus ganiev abstract after the collapse of soviet union the membercountries was accompanied by eco. Previous studies generally find mixed empirical evidence on the relationship between government spending and economic growth in this paper, we re- examine the causal relationship between government expenditure and economic growth by conducting the panel granger causality test recently developed by hurlin (2004,. Government expenditure and economic growth: a cross-country study daniel landau university of connecticut waterbury, connecticut i introduction this paper examines the relationship between the share of government consumption expenditure in gdp and the rate of growth of real per capita gdp the work of. Using panel data from 1995 to 2011 for 34 oecd countries, we examine the effects of government consumption spending, public social spending, and public investment on economic growth we use a generalized method of moments estimation technique to solve inconsistency problems with fixed effects.
This paper seeks to examine if the relative size of government (measured as the share of total expenditure in gnp can be determined to granger cause the rate of economic growth, or if the rate of economic growth can be determined to granger cause the relative size of government for this purpose, we first use a bivariate. Negative which is consistent with other past studies recurrent expenditure however was found to have little significant positive impact on growth therefore, government should increase its spending on infrastructure, social and economic activities keywords: public spending, economic growth, ardl cointegration, nigeria. This paper provides empirical evidence on the relationship between the components of government expenditure and economic growth in barbados both the dynamic ordinary least squares and the unrestricted error correction model were employed to analyse time series data spanning from 1976-2011 generally. The relationship between government expenditure and economic growth has been an issue of debate over the years this study investigates the causality between government expenditure and economic growth in nigeria between 1985 and 2014 following the toda-yamamoto non-granger causality testing approach,.
In an attempt to establish long-run relationship between public expenditure and economic growth, the result reveals that the variables are co integrated at 5% and 10% critical level the findings show that there that there is a positive relationship between real gdp as against the recurrent and capital expenditure it could. Kunofiwa tsaurai is a lecturer in financial management his main areas of research interest include stock market development, foreign direct investment, monetary economics, international banking and finance, investments, credit management and risk management nicholas m odhiambo is a professor of economics and. This study examined the effect of government expenditure on its disaggregated level on economic growth in a sample of 20 sub-saharan african countries over the period of 1980-2010 in a dynamic panel data model the result from generalised method of moments (gmm) revealed an inverse relationship.
School of development economics national institute of development administration bangkok, 10240, thailand abstract: the notion that more government expenditures can stimulate growth is controversial the causation between government expenditures and economic growth in thailand is examined using the granger. This paper uses a new approach to estimate how government expenditures affect the growth rate of real gdp they affect the growth rate through three channels ‐ total factor productivity, investment and aggregate demand we find that apart from government investment, all government expenditures have. Abstract this paper assesses how fiscal and monetary policies influence economic growth and development in nigeria the essence of the study in to determine the components of government expenditure that enhance growth and development, identify those that do not, and recommend those that should be cut or.
The study focused on the empirical investigation of the influence of government expenditure on administration, economic services, social and community services and total recurrent expenditure on economic development of nigeria measured by real gross domestic product quarterly data ranging from 1980q1 to 2010q4. The literature regarding the impact of government expenditure on economic growth is at best mixed given the conflicting results, we examine the impact of government developmental expenditure on india's economic growth our study spans the period from 1950 to 2007 we have employed standard time series technique.
For decades the relationship between public sector expenditure and economic growth has continued to occupy series of debate among researchers and policy makers the common consensus among the researchers is that public sector expenditure has been identified as an important instrument which the government. Abstract—main purpose of this study is to identify the impact of government expenditure on economic growth in asian countries consequently, main objective is to analyze whether government expenditure causes economic growth in asian countries vice versa and then scrutinizing long-run equilibrium relationship exists.
The allocation of government spending and economic growth: a panel data study of brazilian states luiz carlos ribeiro neduziak fernando motta correia 1 fundação de estudos sociais do paraná / departamento de economia, curitiba / pr — brazil 2pontifícia universidade católica do paraná / departamento de. Government expenditure and economic growth in the eu: long-run tendencies and short-term adjustment alfonso arpaia and alessandro turrini abstract: this paper analyses both the long and the short-run relation between government expenditure and potential output in eu countries by means of pooled mean group. Abstract the need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on the economic development and growth of nations it is against this background that this paper examined the antecedent effect of government spending on the. Abstract this study investigates the effects of public expenditure in education on economic growth in nigeria over a period from 1977 to 2012, with particular focus on disaggregated and sectoral expenditures analysis government expenditures are very crucial instruments for economic growth at the disposal of policy.