scholarly journals The Effect of Government on Economic Growth in Fiji

2003 ◽  
Vol 48 (01) ◽  
pp. 27-38
Author(s):  
D. P. Doessel ◽  
Abbas Valadkhani
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Time Series Data ◽  
Empirical Relationship ◽  
Government Expenditure ◽  
Series Data ◽  
Size Of Government ◽  
High Productivity ◽  
Government Sector ◽  
The Government

This paper investigates the empirical relationship between the size of government and the process of economic growth in Fiji. The results reported here present a mixed picture, in that the model estimated specifies two different effects of the government sector on economic growth. Using annual time series data for the period 1964–1999, it is found that government expenditure exerts a strong beneficial impact on economic growth. However, marginal factor productivity in the government sector is found to be lower than that of the private sector. The reasons for this low productivity are two-fold: the result of the lack of market incentives and signals in the public sector and the involvement of Fiji's government in some activities which may be rationalised in terms of the socio-political objectives of the Fijian government. While recognising that there may be factors which may hinder the process of efficiency in the private sector, it can be argued that by shifting factors of production from the low productivity (government) sector to the high productivity (private) sector, the rate of growth of GNP will increase.

scholarly journals THE ROLE OF FOREIGN INVESTMENT ON ECONOMIC GROWTH OF PAKISTAN: AN EMPIRICAL ANALYSIS FOR THE PERIOD OF 1976 – 2016

2018 ◽  
Vol 1 (2) ◽  
pp. 57-65
Author(s):  
Majid Ali
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Time Series Data ◽  
Private Investment ◽  
Series Data ◽  
Significant Variable ◽  
Private Sector Investment ◽  
The Government ◽  
Public And Private Sector ◽  
Adf Test

The paper aims to examine empirically the nexus between foreign direct investment, domestic investments and economic growth in Pakistan by using time series data. An OLS technique is used to analyze the relationship between FDI, Public & Private investment, Personal remittances with gross domestic products panning from 1976-2016. For a data to be stationary, ADF test has been used and validated that all variables are stationary at level. Results of the study shows that both public and private sector investment are positively related with GDP but Public sector investment have an insignificant effect on GDP, while FDI found inversely and insignificantly correlated with GDP. Personal remittances (PR) relate negatively and have a significant impact on GD. Private investment are found to be the most significant variable which can effect GDP, showing that private investment can fueled economic growth of Pakistan. Hence, the Government of Pakistan needs to formulate such a policy frame work, which focuses on private sector investment in order to enhance economic growth.

Reexamine the Impacts of Education Expenditure, Capital Formation, Human Capital and Expert Labor on Malaysian Economic Growth

2021 ◽  
Vol 12 (3) ◽  
pp. 761-767
Author(s):  
Emilda Hashim Et.al
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Government Expenditure ◽  
Capital Formation ◽  
Observation Time ◽  
Least Square ◽  
Series Data ◽  
Education Expenditure ◽  
The Government

This study aims to reexamine the relationships between selected macroeconomic variables, especially the expenditure on education, on growth of Malaysian economy. Specifically, the exogenous variables in this study comprise of government education expenditure, investment, human capital and expert labor. For analysis purpose, this study adopts the time series data from 1988 until 2018. The estimated model is developed by employing ordinary least square technique (OLS). Outcome of this study discloses that human capital is the most crucial variable in elucidating Malaysian economic growth in the long term. Additionally, the study findings affirm that the government expenditure on education and capital formation are second and third outstanding variables in clarifying the economic growth in the observation time frame, respectively. Surprisingly, this particular study discovers that labor force expertise is irrelevant in influencing economic growth for Malaysia case. Consequently, the results of this study are parallel with other previous studies, especially on the roles that have been played by all variables aforementioned above. Albeit insignificant, expert labor still gives little impact to Malaysia’s economic growth at 10% confidence level. The reason being, as a high middle income country, human capital has more profound effect in promoting economic growth in Malaysia due to its ability to generate remarkably higher productivity for the nation compares to expert labor factor. For future study, further dynamic analysis is needed to prove the variables’ relationships in the short and long terms.

Crowding Out of Private Sector in Tanzania: Government Expenditure, Domestic Borrowing, and Lending Rates

2020 ◽  
Vol 6 (1) ◽  
pp. 123-135 ◽  
Author(s):  
Enock Mwakalila
Keyword(s):  
Private Sector ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Private Sector Development ◽  
Distributed Lag ◽  
Long Run ◽  
Lending Rates ◽  
The Government ◽  
The Impact

This study empirically analyzes the impact of government expenditure and domestic borrowing on credit to the private sector in Tanzania by increasing lending rates. Quarterly time series data are collected from 2004 to 2018. Autoregressive distributed lag (ARDL) model estimation with a bound cointegration test is used to establish the short- and long-run relationships, and the results are subjected to diagnostic tests for robustness. The result shows that government expenditure and domestic borrowing crowd out credit to the private sector by increasing the lending rate in the long run. This calls for the Tanzanian government to reduce some of its deficit spending and domestic borrowing, and instead look for another way to increase the tax revenue using loans from external sources to fund its budget deficit. Also, the study recommends that the government should put more effort on improving private sector development by making the country an easy place to do business, which in turn will increase the tax base through corporate tax and income tax from business employees.

scholarly journals Hypothesizing directional causality between the governance indicators and economic growth: the case of Afghanistan

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Mohammad Naim Azimi ◽  
Mohammad Musa Shafiq
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Time Series Data ◽  
Political Stability ◽  
Wald Test ◽  
Series Data ◽  
Vector Autoregressive ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
The Government

AbstractThis paper examines the causal relationship between governance indicators and economic growth in Afghanistan. We use a set of quarterly time series data from 2003Q1 to 2018Q4 to test our hypothesis. Following Toda and Yamamoto’s (J Econom 66(1–2):225–250, 1995. 10.1016/0304-4076(94)01616-8) vector autoregressive model and the modified Wald test, our empirical results show a unidirectional causality between the government effectiveness, rule of law, and the economic growth. Our findings exhibit significant causal relationships running from economic growth to the eradication of corruption, the establishment of the rule of law, quality of regulatory measures, government effectiveness, and political stability. More interestingly, we support the significant multidimensional causality hypothesis among the governance indicators. Overall, our findings not only reveal causality between economic growth and governance indicators, but they also show interdependencies among the governance indicators.

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 ANALISIS PENGARUH REMITANSI, INVESTASI ASING LANGSUNG, IMPOR DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Regina Septriani Putri ◽  
Ariusni Ariusni
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Positive Effect

Abstract : This study examined and analysis the effect of remittances, foreigndirect investment, imports, and economic growth in Indonesia in the long run andshort run. This study using Error Correction Model (ECM) method and using theannual time series data from 1989 to 2018. This study found that: (1) remittancehave an insignificant positive effect on economic growth in the long run and shortrun,(2)foreign direct investment have a significant positive impact on economicgrowth in the long run and short run, (3) import have an insignificant positiveimpact on economic growth both in the long run and short run. To increase theeconomic growth in the future, this study suggests the government to decresingimports of consume goods and increasing the inflow of capital goods, rawmaterial goods, remittances and foreign direct investment.Keyword : Remittance, Foreign Direct Investment, Import, Economic Growth andECM

scholarly journals The Nexus between Export and Economic Growth in Tanzania

2019 ◽  
Vol 1 (2) ◽  
pp. p95
Author(s):  
Romanus L. Dimoso (PhD, Economics) ◽  
UTONGA, Dickson (MSc. Economics)
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Series Data ◽  
Test Results ◽  
Causality Test ◽  
Goods And Services ◽  
Long Run ◽  
Causality Tests ◽  
The Government ◽  
Econometrics Analysis

This study explored the causal relationship between exports and economic growth in Tanzania. It analyzed time series data for the period of 1980 to 2015. Economic growth is measured in terms of growth per cent while exports are measured in percentage change of goods and services sold abroad. Econometrics analysis was employed in the due course. Such procedures as testing for the presence of unit root, co-integration and causality were done. Furthermore, the Johansen co-integration and Granger causality tests were employed to examine the long-run relationship among variables. The results of co-integration indicate the existence of one co-integrating equation. The causality test results exhibited causality which runs from economic growth to exports. The results conclude that, in the long run, there is a relationship between exports and economic growth in Tanzania. This study recommends the Government to make efforts to improve exports and eventually, in the long-run, rejuvenating the economy.

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.

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 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.

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