Does Infrastructure Matters in Government Spending? A Case Study of Jammu and Kashmir (India) with Cointegration Approach

2017 ◽  
Vol 9 (2) ◽  
pp. 82-97 ◽  
Author(s):  
Samir Ul Hassan ◽  
Biswambhara Mishra
Keyword(s):  
Government Spending ◽  
Time Series Data ◽  
Government Expenditure ◽  
Jel Classification ◽  
Series Data ◽  
Data Set ◽  
Jammu And Kashmir ◽  
Long Run ◽  
The Government ◽  
The Impact

This study is an attempt to investigate the impact of infrastructure level on government spending in short and long run and also to find the tendency of infrastructure level to stabilise any disequilibrium in government spending in long run. Infrastructure is related to the quality and quantity of goods and services provided by government to the population, to fulfil their diverse demands. The state of Jammu and Kashmir (J&K) is not an exception; the increasing trend in different aspects of population and rising needs and aspirations of the growing population forces the government to increase expenditure on that count, which results in increase in aggregate government spending. Using multivariate cointegration technique followed by vector error correction model (VECM) model on annual time-series data for the period from 1984 to 2013 with broader data set of infrastructure dimension, the study found that the infrastructure variables cause major variation in government expenditure in short as well as in long run. Study shows that infrastructure related to health, education, roads and portable water produce positive and significant impact on the growth of government spending and infrastructure related to these dimensions has significant tendency to stabilise any disequilibrium in government spending in long run. JEL Classification: H3, H5, H53, I

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 ANALYSIS THE IMPACT OF SUBSIDY ON RICE PRODUCTION IN MUDA IRRIGATION AREA

2019 ◽  
pp. 73-83
Author(s):  
Nor Asmat Ismail ◽  
Zulkifli Abdul Rahim
Keyword(s):  
Time Series Data ◽  
Government Expenditure ◽  
Rice Production ◽  
Series Data ◽  
Irrigation Area ◽  
Distributed Lag ◽  
Subsidy Scheme ◽  
Long Run ◽  
The Government ◽  
The Impact

Muda Irrigation Area is one of the main rice granaries in Malaysia and is the largest contributor to the country's rice production. It receives the highest subsidies from the government through various types of the rice subsidy scheme. Various efforts and approaches have been implemented through government expenditure (rice subsidy scheme) to ensure that Muda area continues to produce rice for the country. This study aims to examine the effectiveness of rice subsidy scheme given by the government on the changes in production and income of farmers in the Muda area. Among the subsidy schemes are minimum guaranteed prices, rice subsidy scheme and fertilizer subsidy scheme. Independent variables such as rice plantation areas and the number of labors (farmers) have been included in the model. This study focuses on the effect of subsidy scheme on paddy production by applying cointegration test and correction errors according to Autoregressive Distributed Lag (ARDL) approach to validate the existence and direction of the relationship between all variables by using time series data 37 years (1980-2016). The results showed that there was a long-run relationship (cointegration) between government expenditure (rice subsidy scheme) on rice production in the Muda Area. The study suggests that government intervention, need to be continued but needs to be transformed so that the rice industry become more competitive and able to become producers and exporters of rice to foreign countries.

scholarly journals Does government spending reduce poverty in Nigeria? Evidence from Auto-Regressive Distributed Lag Specification.

2020 ◽  
Vol 7 (2) ◽  
pp. 86
Author(s):  
Olufemi Samuel Adegboyo
Keyword(s):  
Government Spending ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Transportation Cost ◽  
Series Data ◽  
Distributed Lag ◽  
Auto Regressive ◽  
The Government ◽  
Transfer Capital ◽  
The Impact

This paper analyses the impact of government spending on poverty reducing in Nigeria for the period 1981 to 2017 making use of annual time series data. The study employs the Auto-Regressive Distributed Lag (ARDL) approach. The result of the study revealed that economic service recurrent expenditure (ESRX), social and community recurrent expenditure (SCSRX), Transfer recurrent expenditure (TRX) reduces poverty while transfer capital expenditure (TCX) and administrative recurrent expenditure (ADRX) escalate poverty. Consequently, the study recommends that Government should embark on provision of food subsidies, subsidies farm input for farmers, subsidies transportation cost. Furthermore, government should endeavor to pay pensioners all their entitlements including gratuities as at when due without any delay, government should also be giving stipend to the unemployed and disabled, more poverty alleviating programs should be organize Also, the huge cost of maintaining the government should be reduced by reducing the numbers of political appointees to a reasonable size.

scholarly journals The Impact of Macroeconomic variables on the credit provided by Saudi Banks: تأثير المتغيرات الاقتصادية الكلية على التمويل المصرفي في المملكة العربية السعودية (دراسة قياسية شملت البيانات من 1970م – 2012م)

2019 ◽  
Vol 3 (3) ◽  
Author(s):  
Eyas Jafar Abdel Rahim
Keyword(s):  
Banking Sector ◽  
Time Series Data ◽  
Positive Impact ◽  
Government Expenditure ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Bank Deposits ◽  
Long Run ◽  
The Impact

The study aimed to examine the impact of macroeconomic variables of the Saudi economy as in Gross Domestic Product (GDP), Government Expenditure (G), Economic Openness (OPE), Inflation Rate (CPI) and the Bank Deposits (DS) on the credit provided by Saudi banks (BF), on annual time series data between 1970-2012. To investigate this relationship, the study used Autoregressive Distributed Lag method (ARDL) to measure the long-run and short-run impact, At that the E-views 8.1 has been used for analyze the cointegration,the diagnostic, the reliability - stability tests, and the forecasting behavior of the model. The study found that (BF) is affected positively by (GDP) growth rate in the long-run. Also the (BF) has been affected negatively in the short and long-run by inflation rates (CPI) and government expenditure (G). Consequently the Contractionary Fiscal Policy in recent period will not lead to reduce the financial performance of Saudi banks, and the growth of (GDP) in the future will have positive impact on the financing capacity of the Saudi banking sector.

scholarly journals Impact of Women Education on Economic Growth: An Evidence from Pakistan

2021 ◽  
Vol 3 (2) ◽  
pp. 113-120
Author(s):  
Kiran Zahra ◽  
Mudassar Yasin ◽  
Baserat Sultana ◽  
Zulqarnain Haider ◽  
Raheela Khatoon
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Economic Development ◽  
Time Series Data ◽  
Essential Element ◽  
Series Data ◽  
Education Expenditure ◽  
Long Run ◽  
The Government ◽  
The Impact

Education is the most fundamental right in the current situation, and it is an essential element of economic growth. No country can achieve economic development and goals without investing in education. Pakistan’s economic development is possible when education is equal for both men and women, but the government did not give importance to the sector as it deserved. This study investigated the determinants of female higher education in Pakistan and the impact of women's education on the economic growth of Pakistan. This study utilized time-series data from 1991 to 2019. The autoregressive distribution lag (ARDL) model is applied to estimate the impact. The result shows that in Pakistan, education expenditure has no positive effect on female education. In contrast, a positive relationship between female higher education and GDP growth exists, but this relation is not strong in the short run and long run.

scholarly journals China–Pakistan Economic Corridor, Logistics Developments and Economic Growth in Pakistan

Logistics ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 35
Author(s):  
Zunaira Khadim ◽  
Irem Batool ◽  
Muhammad Bilal Lodhi
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Real Income ◽  
Series Data ◽  
Data Set ◽  
Long Run ◽  
Short Run ◽  
Factor Inputs ◽  
The Impact

The study aims to analyze the impact of China–Pakistan Economic Corridor (CPEC) logistics-related developments on economic growth in Pakistan. The study defined a Cobb–Douglas type of research framework in which the country’s real income level relates to four factor inputs, e.g., employed labor force, logistics development, financial development, and energy consumption in an economy. The study utilized the time series data set for the period 1972–2018. To estimate the long run relationship and short run adjustment mechanism, the study used Johansen’s method of co-integration and error correction model. Estimated results showed that the country’s logistics developments have a significant positive impact on economic growth in both the long run and the short run. It implies that China–Pakistan collaborative efforts for logistics developments will have a strong positive impact on economic growth in Pakistan.

scholarly journals Fiscal Response to Terrorism in Pakistan: The Role of Institutions

2021 ◽  
Vol 5 (1) ◽  
pp. 154-192
Author(s):  
Tahir Mukhtar ◽  
Zainab Jehan
Keyword(s):  
Fiscal Policy ◽  
Time Series Data ◽  
Institutional Quality ◽  
Jel Classification ◽  
Defense Spending ◽  
Series Data ◽  
Tax Revenue ◽  
The Government ◽  
The Impact

This study empirically estimates the fiscal consequences of terrorism in Pakistan by using annual time series data from 1984 to 2016. By employing the autoregressive distributed lag (ARDL) technique, the study has gauged the impact of terrorist incidents on two important facets of fiscal policy, namely, tax revenue and defense spending. The results reveal that terrorism has detrimental ramifications for fiscal policy in Pakistan. Specifically, on the one hand, an increase in terrorist incidents tends to bring a fall in tax revenue while on the other hand, they induce a rise in defense outlays, thus deteriorating both fronts of the fiscal position. Notably, the moderating role of institutional quality appears significant and indicates that institutional quality has not only a significant direct impact on fiscal policy, but it also helps in completely mitigating (reducing) the harmful impact of terrorism on defense spending (tax revenue) in Pakistan. These findings suggest that there is a need to take appropriate steps for strengthening institutional setup to control the fallouts of terrorism on fiscal behavior of the government of Pakistan. Keywords: Terrorism; Tax Revenue; Institutional Quality; ARDL JEL Classification: E62; H2; E02; H5; F35

scholarly journals Does government spending reduce poverty in Nigeria? Evidence from Auto-Regressive Distributed Lag Specification.

2020 ◽  
Vol 25 (1) ◽  
pp. 14
Author(s):  
Olufemi Samuel Adegboyo
Keyword(s):  
Government Spending ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Transportation Cost ◽  
Series Data ◽  
Distributed Lag ◽  
Auto Regressive ◽  
The Government ◽  
Transfer Capital ◽  
The Impact

This paper analyses the impact of government spending on poverty reducing in Nigeria for the period 1981 to 2017 making use of annual time series data. The study employs the Auto-Regressive Distributed Lag (ARDL) approach. The result of the study revealed that economic service recurrent expenditure (ESRX), social and community recurrent expenditure (SCSRX), Transfer recurrent expenditure (TRX) reduces poverty while transfer capital expenditure (TCX) and administrative recurrent expenditure (ADRX) escalate poverty. Consequently, the study recommends that Government should embark on provision of food subsidies, subsidies farm input for farmers, subsidies transportation cost. Furthermore, government should endeavor to pay pensioners all their entitlements including gratuities as at when due without any delay, government should also be giving stipend to the unemployed and disabled, more poverty alleviating programs should be organize Also, the huge cost of maintaining the government should be reduced by reducing the numbers of political appointees to a reasonable size.

The Impact of Foreign Aid on Education in Pakistan

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Muhammad MASOOD ANWAR ◽  
Ghulam YAHYA KHAN ◽  
Sardar JAVAID IQBAL KHAN
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Time Series Data ◽  
Political Stability ◽  
Vital Role ◽  
Series Data ◽  
Major Objective ◽  
Data Set ◽  
The Government ◽  
The Impact

Foreign Aid (FA) is an important determinant of economic growth in the developing world and especially countries like Pakistan, where development needs could not be financed by the government due to limited domestic resources. FA supplements domestic resources of finance such as savings and also enhances the amount of investment and capital stock in the country. Education is also a one of the major contributors of economic growth. In countries like Pakistan education also plays a vital role in political stability where institutions are not sound enough. The Major objective of the study is to check the effectiveness of foreign aid for education in Pakistan. This study has been primarily conducted using a time series data set for Pakistan over the period 1975 to 2010. The variables of interest are foreign aid and education, other variables are investment and openness to foreign trade. For empirical analysis ARDL techniques of co-integration developed by Pesaran and Shin (Ghorbani & Motallebi, 2009) have been used. The results show positive relationship between foreign aid and education. The study has relevance as far as policy decisions are concerned for foreign aid. 

Another Side of the Coin: Exchange Rate Movements and the Manufacturing Sector in Nigeria

2018 ◽  
Vol 10 (1-2) ◽  
pp. 63-79
Author(s):  
Anthony Orji ◽  
Jonathan E. Ogbuabor ◽  
Chiamaka Okeke ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Exchange Rate ◽  
Private Sector ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Manufacturing Sector ◽  
Jel Classification ◽  
Least Square ◽  
Series Data ◽  
Long Run ◽  
The Impact

This study estimated the impact of exchange rate (EXCH) movements on the manufacturing sector in Nigeria over the period 1981–2016. Time series data and ordinary least square (OLS) estimation technique were employed in this study to address the specified objective. The variables analysed were EXCH, manufacturing GDP (MGDP), government capital expenditure, foreign direct investment (FDI), credit to private sector and value of imports. From the result, it is apparent that EXCH movements play a significant role in the manufacturing sector’s performance in Nigeria. Specifically, the findings showed that EXCH, government capital expenditure (GCEXP), imports and FDI were positively related to MGDP, while credit to private sector was negatively related. Among others, the study recommends that the apex bank keep a closer watch on EXCH developments in order to keep formulating up-to-date policies that will ultimately enhance EXCH stability. This will largely contribute to the development of the manufacturing sector in the short and long run. JEL Classification: D51, F31, Q24

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