scholarly journals Revisiting the Relationship between Economic Growth and Government Size

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
Atrayee Ghosh Roy
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Government Expenditure ◽  
Private Investment ◽  
The United States ◽  
Simultaneous Equation ◽  
Series Data ◽  
Government Size ◽  
Government Investment ◽  
Government Consumption

The purpose of this paper is to explore the association between government size and economic growth in the United States using time-series data over the period 1950–2007. In particular, this paper examines the effects of two key components of government expenditure, namely, government consumption and government investment, on US economic growth. A simultaneous-equation model is used to deal with the problem of bi-directional relationship between government size and economic growth. The results suggest that an increase in government consumption slows economic growth, while a rise in government investment enhances economic growth. Furthermore, the results also show that government investment crowds out private investment. Therefore, the overall effect of total government expenditure on economic growth is ambiguous.

scholarly journals Effect of Tax and Debt Financed Government Expenditure on Economic Growth in Kenya

2020 ◽  
pp. 1-13
Author(s):  
Gideon Mukui ◽  
Joseph Onjala ◽  
Japheth Awiti
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Public Investment ◽  
Government Expenditure ◽  
Series Data ◽  
Tax Revenue ◽  
Government Investment ◽  
Investment Expenditure ◽  
Public Consumption ◽  
Negative Effect

This study aims at analyzing the effect of tax and debt-financed government expenditure on economic growth in Kenya using time series data from 1980-2014. Vector Error Correction Model (VECM) was used to analyze the data. The empirical findings showed that public investment expenditure financed by issuing debt has positive effect on economic growth. The results also indicated that financing government consumption expenditure using debt has negative effect on economic growth. With regards to tax revenue, the results indicated that tax financed public consumption spending affects economic growth negatively. Moreover, the results showed financing government investment expenditure using tax revenue promotes economic growth. Based on the findings, this study therefore recommends fiscal authorities in to use borrowing to finance investment expenditure as opposed financing consumption spending. Additionally, given the adverse effects of debt-accumulation on growth performance, policy makers should focus more on domestic revenue mobilization to finance government expenditures.

scholarly journals Relationship between Volatility of Economics Variables and Economics Growth

2019 ◽  
Vol 6 (3) ◽  
pp. p375
Author(s):  
Rubina Shaukat ◽  
Irfan Hussain Khan ◽  
Hasan Raza Jafri ◽  
Nighat Hanif
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Time Series Data ◽  
Private Investment ◽  
Series Data ◽  
Government Consumption ◽  
Consumption Expenditures ◽  
Interest Rate Volatility ◽  
The Government ◽  
Determinants Of Economic Growth

Economic growth of an economy is defined as the steady state path through which the productivity of an economy is improved and increases the levels of national output and income. The government consumption expenditures and investment play a key role in the process of investigating the macroeconomic performance of an economy and determinants of economic growth. The countries which grow quickly, invest a substantial fraction of their GDP for consumption expenditures as well for the sources which encourage private investment. The objective of this study to calculate the volatility in economics growth in Pakistan. The annual time series data are used from 1975 to 2014 from WDI, Economics survey of Pakistan and Hand Book of Statistics. GARCH model has been used to measure volatility of all variables. The empirical results of the study confirmed that the volatility of the different variables (volatility of inflation, volatility of interest rate, volatility of political instability, volatility of GDP, and volatility of foreign direct investment) significant affect the government consumption expenditures and private investment in the economy of Pakistan. The study analyzed data by using the autoregressive distributive lag model which is mainly used in time series data Econometrics to estimate the non-stationary models with mix order of integration. The estimated results of the study evaluated that volatility of the inflation lead to uncertainty which is also suggested by the Able (1980) and negatively affect the economy consumption expenditures as well as private investment in the economy of Pakistan. Because uncertainty directly affects the cost of capital as well as reduce private investor confidence.

Impact of Health and Agriculture Financing on Economic Growth in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 37-58
Author(s):  
Rasaki Olufemi KAREEM ◽  
◽  
Olawale LATEEF ◽  
Muideen Adejare ISIAKA ◽  
Kamilu RAHEEM ◽  
...  
Keyword(s):  
Economic Growth ◽  
Federal Government ◽  
Causal Relationship ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Health Sector ◽  
Series Data ◽  
The Impact

The study focused on the impact of health and agriculture financing on economic growth in Nigeria from 1981 to 2019. The study utilized the time series data which was extracted from Central Bank of Nigeria annual statistical bulletin. Unit Root test was performed with the use of Augmented Dickey-Fuller test in order to ascertain the stationarity of all the variables and they were all found to be stationary at order 1 in the two specified models (composite and disaggregated). Error Correction Model (ECM) was used to analyze the data in order to determine the speed of adjustment from the short run to the long run equilibrium state. Casualty test was used to confirm causal relationship among the variables of interests. The study revealed that Federal Government expenditure in Health sector has a significant effect on economic growth in Nigeria. Federal Government expenditure in Agricultural sector equally had a positive effect on economic growth but surprisingly not significant. Considering the disaggregated form, Federal Government capital expenditure in both Health and Agricultural sectors have positive and statistically significant effect on economic growth while Federal Government recurrent expenditure on health has a positive and statistically insignificant effect in economic. It was also revealed that there is causal relationship among the variables. Based on the findings, the study concluded that Federal Government Expenditure in Health Sectors and Agriculture Sectors have effect on economic growth in Nigeria.

scholarly journals Effect of Government Expenditures and Banking Loan Distribution on the Performance of Human Resource Development in Papua Province

2019 ◽  
Vol 3 (2) ◽  
pp. 86
Author(s):  
Hendricus Lembang
Keyword(s):  
Human Resource Development ◽  
Educational Level ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Private Investment ◽  
Bank Loan ◽  
Series Data ◽  
Section Data ◽  
Capital Spending

The research aims to analyze government expenditure on capital spending and bank loan as well as to determine whether it has positive and significant effects on the Human Development Index (HDI) in Papua Province. The method is a quantitative study using a quantitive approach (deductive) to test the hypothesis and explain the causal relationship among panel variables (explanatory research). Data analysis techniques in the form of pooled data. Time series data were taken from 2005 to 2012 and the cross  section data consisting of 19 regioncies and 1 city in Papua Province. The research results about the local government expenditure indicate that 10 the capital expenditure has positive and significant direct effect on an increase in private investment, educational level, employment recruitment and HDI, 2) the bank consumer loan distribution has positive and significant effect on the labor absorption,  3) the private investment has positive but not significant impact on educational level; it has positive and direct significant impact in the labor absorption, 4) the level of education has positive and direct significant impact on the employment recruitment and HDI, 5) labor absorption has positive and direct significant impact in the HDI.

scholarly journals Government Expenditure and Economic Growth in South Africa: A Vector Error Correction Modelling and Granger Causality Test

2017 ◽  
Vol 9 (4) ◽  
pp. 164
Author(s):  
Kagiso Molefe ◽  
Ireen Choga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Error Correction ◽  
Granger Causality ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Vector Error Correction ◽  
Vector Error ◽  
The Relationship

Previous studies generally find mixed empirical evidence on the relationship between government spending and economic growth. This study re-examine the relationship between government expenditure and economic growth in South Africa for the period of 1990 to 2015 using the Vector Error Correction Model and Granger Causality techniques. The time series data included in the model were gross domestic Product (GDP), government expenditure, national savings, government debt and consumer price index or inflation. Results obtained from the analysis showed a negative long-run relationship between government expenditure and economic growth in South Africa. Furthermore, the estimate of the speed of adjustment coefficient found in this study has revealed that 49 per cent of the variation in GDP from its equilibrium level is corrected within of a year. Furthermore, the study discovered that the causality relationship run from economic growth to government expenditure. This implied that the Wagner’s law is applicable to South Africa since government expenditure is an effect rather than a cause of economic growth. The results presented in this study are similar to those in the literature and are also sustained by preceding studies.

scholarly journals ANALISIS PENGARUH INVESTASI SWASTA , PENGELUARAN PEMERINTAH, DAN PENDUDUK TERHADAP PERTUMBUHAN EKONOMI DI KOTA BITUNG

2019 ◽  
Vol 19 (1) ◽  
Author(s):  
Yandiles Weya ◽  
Vecky A.J. Masinambow ◽  
Rosalina A.M. Koleangan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Economic Activity ◽  
Time Series Data ◽  
Private Investment ◽  
Least Square ◽  
Series Data ◽  
Ordinary Least Square ◽  
North Sulawesi ◽  
The City

ANALISIS PENGARUH INVESTASI SWASTA , PENGELUARAN PEMERINTAH, DAN PENDUDUK TERHADAP PERTUMBUHAN EKONOMI DI KOTA BITUNG Yandiles Weya, Vecky A.J. Masinambow, Rosalina A.M. Koleangan. Fakultas Ekonomi dan Bisnis, Magister Ilmu EkonomiUniversitas Sam Ratulangi, Manado ABSTRAKPada suatu periode perekonomian mengalami pertumbuhan negatif berarti kegiatan ekonomi pada periode tersebut mengalami penurunan. Kota Bitung periode tahun 2004-2014 mengalami pertumbuhan ekonomi yang fluktuasi. Adanya fluktuasi ini dapat dipengaruhi oleh investasi swasta, belanja langsung, dan penduduk Pertumbuhan ekonomi merupakan salah satu tolok ukur keberhasilan pembangunan ekonomi di suatu daerah. Pertumbuhan ekonomi mencerminkan kegiatan ekonomi. Pertumbuhan ekonomi dapat bernilai positif dan dapat pula bernilai negatif. Jika pada suatu periode perekonomian mengalami pertumbuhan positif berarti kegiatan ekonomi pada periode tersebut mengalami peningkatan. Sedangkan jikaTahun 2004-2014 yang bersumber dari Badan Pusat Statistik Provinsi Sulut dan Kota Bitung. Metode analisis yang digunakan adalah model ekonometrik regresi berganda double-log (log-log) dengan metode Ordinary Least Square (OLS). Penelitian ini bertujuan untuk mengetahui apakah perkembangan investasi swasta, belanja langsung, dan penduduk berpengaruh terhadap pertumbuhan ekonomi Kota Bitung. Data yang dipakai menggunakan data time series periodeHasil regresi model pertumbuhan ekonomi dengan persamaan regresinya yaitu  LPDRB  =  - 4,445    +  0.036 LINV  +  0.049 LBL  +  2,229 LPOP.  Dari hasil tersebutmenunjukkan perkembangan investasi swasta, belanja langsung dan penduduk berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi Kota Bitung.Kata Kunci :pertumbuhan ekonomi, belanja langsung, penduduk, regresi bergandaABSTRACT    The economy experienced a period of negative growth means economic activity in this period has decreased. Bitung-year period 2004-2014 economic growth fluctuations. These fluctuations can be influenced by private investment, direct spending, and population Economic growth is one measure of the success of economic development in an area. Economic growth reflects economic activity. Economic growth can be positive and can also be negative. If the economy experienced a period of positive growth means economic activity during the period has increased. Whereas if  years 2004-2014 are sourced from the Central Statistics Agency of North Sulawesi Province and Bitung. The analytical method used is an econometric model double-log regression (log-log) with Ordinary Least Square (OLS). This study aims to determine whether the development of private investment, direct spending, and population affect the economic growth of the city of Bitung. The data used using time series data period.    The results of the regression model of economic growth with the regression equation is LPDRB = - LINV 4.445 + 0.036 + 0.049 + 2.229 LPOP LBL. From these results show the development of private investment, direct expenditure and population positive and significant impact on economic growth of Bitung.Keywords: Economic growth, direct spending, population, regression.

Human Capital Impact on Economic Growth in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 15-22
Author(s):  
Chuwuemeka Ogugua AGBO ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Private Investment ◽  
Series Data ◽  
Tertiary Institutions ◽  
Explanatory Variables ◽  
The Government ◽  
The Impact

This study aims to examine the impact of human capital on economic growth in Nigeria. Despite all effort to improve education condition in Nigeria, there hasn’t been much encouraging improvement. This has caused a large number of the population to move abroad for studies. Most conducive tertiary institutions are owned by private individuals, the government owned universities have been overlooked and recklessly abandoned. In this study OLS multiple regression was adopted to analyze the time series data for the period of 1985-2018 to test if Average Year of Schooling (AVYS), Private Investment in Telecommunication (PIT), Capital Expenditure on Education (CEE), and Recurrent Expenditure on Education (REE) have an impact on growth in Nigeria or not. The data was derived from CBN statistical Bulletin (2018). Result showed that all the four explanatory variables have significant impact on Economic growth. However, it is therefore important for government to increase education budget annually.

scholarly journals DOES STOCK MARKET DEVELOPMENT PLAY ANY ROLE IN THE EFFECT OF FDI ON ECONOMIC GROWTH IN NIGERIA? AN EMPIRICAL INVESTIGATION

2016 ◽  
pp. 51-61
Author(s):  
Oziengbe Scott Aigheyisi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Time Series Data ◽  
Ordinary Least Squares ◽  
Growth Effect ◽  
Market Development ◽  
Series Data ◽  
Domestic Investment ◽  
Government Consumption ◽  
Stock Market Development

The objective of the paper is to investigate whether stock market development plays any role in the effect of foreign direct investment (FDI) on economic growth in Nigeria. Using annual time series data that span the period from 1981 to 2014, and employing the fully modified ordinary least squares (FMOLS) estimation technique, the empirical evidence indicates that FDI, domestic investment and stock market development positively and significantly affect economic growth, but the effect of the interaction between stock market development and FDI on economic growth is negative and significant, indicating that the Nigerian bourse is not yet fully developed to engender positive growth effect of FDI. The study further finds that government consumption expenditure and trade openness adversely affect the growth of the country’s real GDP per capita. Recommendations of the paper include efforts by the government to design and implement programmes and policies aimed at enhancing the attractiveness of the country to foreign and local investors, efforts by capital market regulators to enhance stock market efficiency, reduction of government consumption expenditures and import control.

scholarly journals The Reform in Government Expenditure and the Standard of Living in Bahrain

2021 ◽  
Author(s):  
Fatema Alaali
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Time Series Data ◽  
Government Expenditure ◽  
Standard Of Living ◽  
Series Data ◽  
Vector Error Correction ◽  
Education And Health ◽  
Oil Revenues ◽  
The Relationship

The drop of oil prices since the second half of 2014 have affected the credit risk and liquidity situation in Bahrain. Therefore, Bahrain have implemented substantial economic diversification in the economic structure including manufacturing, refining, tourism, trade and finance. With the recognition of the importance of governments expenditure restructuring, Bahrain government introduced number of initiatives such as streamlining government expenditure, increasing revenues, and redirecting government subsidies towards eligible citizens. Understanding the relationship between revenues, government spending and economic growth is an essential perception in evaluating the efficiency of government’s strategy in managing its resources and the impact on the standard of living in any country. This chapter examines the relationship between total government expenditure as well as sectoral government spending (specifically education and health sectors), oil revenues and the economic growth of Bahrain using time series data over the period 1989–2015. To achieve this aim, the vector error correction model (VECM) is employed. In order to ensure the sustainability of resources and maintain economic growth, Bahrain should continue managing its expenditure, by cutting down expenses on certain sectors through privatization, and increasing spending on health and education sectors.

scholarly journals DINAMIKA PENDUDUK DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
pp. 22
Author(s):  
Adhitya Wardhana ◽  
Bayu Kharisma ◽  
Sarah Annisa Noven
Keyword(s):  
Economic Growth ◽  
Population Dynamics ◽  
Infant Mortality ◽  
Time Series Data ◽  
Government Expenditure ◽  
Negative Influence ◽  
Least Square ◽  
Series Data ◽  
Negative Effect ◽  
Positive Effect

This study aims to see the effect of population dynamics variables on economic growth in Indonesia. This study uses the Ordinary Least Square model with time series data from 1986 to 2016. The data used are population dynamics variables, such as number of fertilities, infant mortality, with the variable control are the amount of labor, savings and government expenditure on economic growth measured through Gross Domestic Product. The results os the study showed that the fertility amount in Indonesia has a negative effect on the amount of economic growth in Indonesia, which means that increasing population will reduce economic growth in Indonesia. then, variable infant mortality has a negative influence on economic growth in Indonesia. Fertility variables and the population of productive age have a positive effect on labor force participation rates. Control variables, like savings and government expenditure, also have a positive effect on economic growth in Indonesia.

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