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 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.

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

scholarly journals Ageing Population and Economic Growth: Evidence from Malaysia

2020 ◽  
pp. 11-18
Author(s):  
Shairilizwan Taasim
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Ageing Population ◽  
Distributed Lag ◽  
Employment Sector ◽  
Long Run ◽  
Development Expenditure ◽  
The Impact

This main purpose of this article investigated the impact of ageing population on economic growth in Malaysia. Annual time series data for 27-year duration (1990-2017) was used and the autoregressive distributed lag (ARDL) was applied. This study will focuses on addressing role of ageing population in Malaysia by context that failed to receive much attention especially in employment sector. By using Romer [1] endogenous theory, the cointegration result revealed that exists a long run relationship exists between ageing population in Malaysia government development expenditure in education and economic growth. Our analysis recommends further investment in government expenditure in education sector to achieving higher human capital capability as a towards high income country and ageing phenomena.

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 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.

IMPACT OF MONETARY POLICY TARGETS ON CAPITAL MARKET DEVELOPMENT IN NIGERIA

2021 ◽  
Vol 8 (1) ◽  
pp. 85-95
Author(s):  
Abdulkarim Musa ◽  
◽  
Uwaleke Uche ◽  
Nwala Nneka ◽  
◽  
...  
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Capital Market ◽  
Time Series Data ◽  
Market Development ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study empirically examines the impact of monetary policy targetson capital market development in Nigeria from 1986-2018. Time series data and econometric tools were used to test for the stationarity and causality effect. The Auto-Regressive Distributed Lag Model (ARDL) and Error Correction Model (ECM) techniques were used to examine the short-run and long-run impact and relationship between Monetary Policy and Capital Market Development in Nigeria. The study revealed that both in the long run and short run Exchange Rate (EXCHR), Inflation Rate (INFR), and Interest Rate in Nigeria (INTR)were negatively related to Capital Market Development (CAMKTD) in Nigeria and they were statistically insignificant in explaining changes in Capital Market Development (CAMKTD) in Nigeria. On the other hand, inthe long run, Money Supply was positively related to Capital Market Development (CAMKTD) in Nigeria and was statistically significant at a 5% level significant while Money Supply (M2) was positively related to Capital Market Development (CAMKTD) in Nigeria both in the long run and short-run and was statistically significant at 5% level of significance. Therefore, the study recommends that government should improve the efficiency and effectiveness of the money supply in Nigeria since it was statistically significant in determining the improvement of Capital Market Development (CAMKTD) in Nigeria.

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 Macroeconomic Determinants of Inclusive Growth in Pakistan: An ARDL Approach

2019 ◽  
Vol IV (II) ◽  
pp. 105-118
Author(s):  
Vivek Anand ◽  
Muhammad Qasim Nizamani ◽  
Farheen Qasim Nizamani
Keyword(s):  
Time Series Data ◽  
Government Expenditure ◽  
Health Sector ◽  
Negative Relationship ◽  
Series Data ◽  
Inclusive Growth ◽  
Infrastructure Development ◽  
Economic Determinants ◽  
Distributed Lag ◽  
Long Run

There is increasing concern that growth in most part of the world in not distributed equitably. This is particularly the situation in Pakistan, where the economic growth is uneven and biased toward the affluent. This study aims to present empirical analysis to characterize the association between inclusive growth and its macro-economic determinants in Pakistan. In this context, the study employs annual time-series data for 23 years (1994-2017). In order to obtain long-run and short-term results, both auto-regressive distributed lag (ARDL) and error correction model (ECM) was being implemented. The findings of the study reveal that infrastructure development and government consumption have a positive and significant impact on the long-term inclusive growth of Pakistan. In contrast, a negative relationship is being observed between inflation, health expenditure and inclusive growth. Based on the findings, the study suggests that policymakers should develop appropriate policies to promote healthy government expenditure, infrastructure development, control inflation, and bring transparency in the health sector for fostering inclusive growth in Pakistan.

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.

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