scholarly journals Study of the Relationship between Government Expenditure and Economic Growth for China and Korea

2019 ◽  
Author(s):  
Jong Chan Lee ◽  
Yi Joong Won ◽  
Sang Young Jei
Keyword(s):  
Economic Growth ◽  
Economic Status ◽  
Government Expenditure ◽  
High Growth ◽  
Quantile Regression Model ◽  
Moderate Growth ◽  
The 2008 Financial Crisis ◽  
The Government ◽  
The Relationship

On October 18, 2017, Chinese President Xi Jinping presented the blueprint for building a modernized socialist nation through the realization of the Xiao Kang (Every nation enjoys a peaceful and affluent life, it is meaningless to eliminate the poor) social construction at the 19th Congress of China. Subsequent to the 2008 financial crisis, the world has moved on to the new economic status of the New Normal. China has also entered the era of “Xinchang Thai,” which is moving from the high-growth to the moderate-growth phase. Therefore, the government of China emphasizes privatization, liberalization, and deregulation. China is also influenced by government policies due to the nature of socialism. This study confirms China’s current stage of economic development based on Barro’s theory. Thus, we use a quantile regression model and examine the correlation between economic growth and functional classification of government expenditure during Xi Jinping's term of office. Furthermore, we selected Korea as a comparative country as the two countries have common features.

scholarly journals Study of the Relationship between Government Expenditures and Economic Growth for China and Korea

2019 ◽  
Vol 11 (22) ◽  
pp. 6344 ◽  
Author(s):  
Jong Chan Lee ◽  
Yi Joong Won ◽  
Sang Young Jei
Keyword(s):  
Economic Growth ◽  
Economic Status ◽  
Government Expenditure ◽  
High Growth ◽  
Quantile Regression Model ◽  
Moderate Growth ◽  
The 2008 Financial Crisis ◽  
The Government ◽  
The Relationship

On October 18, 2017, Chinese President Xi Jinping presented the blueprint for building a modernized socialist nation through the realization of the Xiao Kang (every nation enjoys a peaceful and affluent life; it is meaningless to eliminate the poor) social construction at the 19th Congress of China. Subsequent to the 2008 financial crisis, the world has moved on to the new economic status of the “new normal”. China has also entered the era of Xinchang Thai, which is moving from the high-growth to the moderate-growth phase. Therefore, the government of China emphasizes privatization, liberalization, and deregulation. China is also influenced by government policies due to the nature of socialism. This study confirms China’s current stage of economic development, based on Barro’s theory. Thus, we use a quantile regression model and examine the correlation between economic growth and functional classification of government expenditure during Xi Jinping’s term of office. Furthermore, we selected Korea as a comparative country, as the two countries have common features.

Government expenditure and economic growth in the European Union countries

2018 ◽  
Vol 45 (2) ◽  
pp. 372-386 ◽  
Author(s):  
Gitana Dudzevičiūtė ◽  
Agnė Šimelytė ◽  
Aušra Liučvaitienė
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Government Spending ◽  
Government Expenditure ◽  
The European Union ◽  
Policy Makers ◽  
Content Type ◽  
Eu Countries ◽  
The Government ◽  
The Relationship

Purpose The purpose of this paper is to provide more reliable estimates of the relationship between government spending and economic growth in the European Union (EU) during the period of 1995-2015. Design/methodology/approach The methodology consisted of several different stages. In the first stage for an assessment of dynamics of government spending and economic growth indicators over two decades, descriptive statistics analysis was employed. Correlation analysis helped to identify the relationships between government expenditures (GEs) and economic growth. In the third stage, for modeling the relationship and the estimation of causality between GE and economic growth, Granger causality testing was applied. Findings The research indicated that eight EU countries have a significant relationship between government spending and economic growth. Research limitations/implications This study has been bounded by general GE and economic growth only. The breakdowns of general GE on the basis of the activities they support have not been considered in this paper, which is the main limitation of the research. Despite the limitation, it might be maintained that the research highlights key relationships in the EU countries. Originality/value These insights might be useful for policy makers. In countries with unidirectional causality running from GE to economic growth, the government can employ expenditure as a factor for growth. The governments should ensure that resources are properly managed and efficiently allocated to accelerate economic growth in the countries with unidirectional causality from GDP to GE.

scholarly journals DÉFICIT FISCAL, CRECIMIENTO ECONÓMICO E INFLACIÓN, ¿UNA RELACIÓN EXÓGENA?

2020 ◽  
Vol 79 (312) ◽  
pp. 89
Author(s):  
Federico Novelo Urdanivia ◽  
Nancy Muller Durán
Keyword(s):  
Economic Growth ◽  
Government Expenditure ◽  
Negative Relationship ◽  
Sole Source ◽  
Output Growth ◽  
Fiscal Deficit ◽  
Economic Growth Rate ◽  
Long Run ◽  
The Government ◽  
The Relationship

<p>En este artículo analizamos la relación entre el crecimiento económico, el déficit fiscal y la inflación en México, considerando el periodo en que ha estado vigente la autonomía del Banco de México respecto del gobierno. Estimamos dos modelos CVAR para demostrar que si el gasto de gobierno es endógeno al crecimiento económico, entonces el déficit fiscal no es necesariamente la única causa de la inflación. Nuestros resultados muestran que, aún sin causalidad en el sentido de Granger, existe una relación negativa de largo plazo entre el gasto de gobierno y la inflación. De manera conjunta, ambos modelos revelan que a mayor crecimiento económico, mayor gasto fiscal y menor inflación.</p><p> </p><p align="center">FISCAL DEFICIT, ECONOMIC GROWTH AND INFLATION, AN EXOGENOUS RELATIONSHIP?</p><p align="center"><strong>ABSTRACT</strong><strong></strong></p><p>This paper deals with the relationship between output growth, fiscal deficit and the rate of inflation in Mexico for the period of the independence of Banco de México. A couple of CVAR models are estimated with the aim of testing whether the government expenditure is endogenous to economic growth, in which case the fiscal deficit will not necessarily be the sole source of inflation. According to our empirical results, it is shown that there is a long-run negative relationship between government spending and inflation, without involving a Granger causality. Both models jointly reveal that the higher the economic growth rate, the larger government expenditure and the lower the rate of inflation.</p>

scholarly journals The Impact of Government Expenditures upon Economic Growth in Post-Communist Countries

2013 ◽  
Vol 60 (1) ◽  
pp. 126-134 ◽  
Author(s):  
Marius Sorin Dincă ◽  
Gheorghița Dincă
Keyword(s):  
Economic Growth ◽  
Government Expenditure ◽  
Government Expenditures ◽  
National Defense ◽  
East European ◽  
Real Gdp Per Capita ◽  
The Government ◽  
Communist Countries ◽  
The Impact ◽  
The Relationship

Abstract This paper examines the relationship between the structure and share of government expenditure into Gross Domestic Product (GDP) and the real GDP per capita. Our study uses a micro panel data for a sample made of ten countries from Central and East European, for the period 2002-2012. The empirical results of the linear regression show that the GDP/capita is positively correlated with public order and safety expenditures as well as with economic actions, while national defense and general public services are negatively correlated. The results obtained largely correspond with the ones reached by other researchers approaching the topic of the relationship between economic growth and composition of the government expenditures. The health and education expenses, though instrumental for the long-term development of any society, did not show any significant impact upon the evolution of the GDP/capita, probably as a result of the short-term available data.

scholarly journals Real Government Expenditure and Economic Growth in the Southern Caucasus Countries: A Panel Data Analysis

2019 ◽  
Vol 22 (2) ◽  
pp. 20-34 ◽  
Author(s):  
Erdal Gumus ◽  
Rza Mammadov
Keyword(s):  
Economic Growth ◽  
Dominant Role ◽  
Panel Data Analysis ◽  
Government Expenditure ◽  
Policy Formation ◽  
Government Expenditures ◽  
The South ◽  
South Caucasus ◽  
The Government ◽  
The Relationship

The primary purpose of this paper is to find out the relationship between real government expenditures and real gross domestic product (GDP) for three countries of the South Caucasus namely, Azerbaijan, Armenia, and Georgia. The relationship between the variables is essential for policy formation for these countries due to their transition to market economy. There are two main hypotheses related to real government expenditures and growth. The Wagner’s hypothesis argues that the growth of an economy leads to more government spending while Keynes’s hypothesis proposes that government expenditures feed higher economic growth. From policy perspectives, the Keynesian view gives a dominant role in government intervention for higher growth while Wagner view gives just a passive role to the government in economic policy. This paper is designed to investigate these hypotheses by using econometric panel techniques. The analysis covers the years 1990-2016. According to our empirical results, there is a mutually positive relationship between real government expenditures and economic growth in the South Caucasus. At the same time, we also find short and long-term bidirectional causality. These results confirm each other and in line with the existing literature. Our study contributes to the literature as filling the gap by studying the South Caucasus countries.

The relationship between energy consumption and economic growth: New evidence from Greece

2021 ◽  
pp. 131-153
Author(s):  
Antonia Gkergki
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Gdp Per Capita ◽  
Short Term ◽  
Vector Error Correction ◽  
Per Capita ◽  
Econometric Tests ◽  
The Government ◽  
New Research ◽  
The Relationship

This paper examines the relationship between the energy consumption and economic growth from 1968 to 2019 in Greece, by employing the vector error-correction model estimation. A series of econometric tests are employed concerning the stationary of the data, and the co-integration and the relationship among the variables during the long- and short-term. The em-pirical results suggest that there is no bidirectional relationship between economic growth and energy consumption. More specifically, GDP per capita does not affect the energy consump-tion of the three primary sources either in the long-term or the short-term. In other words, the economic crisis and its implications for GDP do not affect energy consumption, and they are not responsible for the considerable decrease in energy sources' consumption. On the other hand, the energy consumption of oil and coal negatively affect the GDP per capita. These re-sults are different from previous studies' conclusions for Greece; this is because the never been experienced before. These findings raise new research questions and also show the limi-tations of the Greek market, as it is regulated and controlled by the government.

scholarly journals Government Expenditure and Economic Growth Nexus: Evidence from Nigeria

2016 ◽  
Vol 5 (4) ◽  
pp. 56
Author(s):  
Oyediran, Leye Sherifdeen ◽  
Sanni, Ibrahim ◽  
Adedoyin, Lukman ◽  
Oyewole Olabode Michael
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Least Square ◽  
National Bureau ◽  
Fiscal Discipline ◽  
Secondary Sources ◽  
Economic Development And Growth ◽  
The Government ◽  
The Impact

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 Nigerian economic growth. The general objective of the study is to ascertain the relationship between government expenditure and economic growth in Nigeria; specifically, the study examined: (i) the significance influence of government capital expenditure on economic growth in Nigeria and (ii) the significance influence of government recurrent expenditure on economic growth in Nigeria. The study employed ordinary least square (OLS) multiple regression analysis in estimating the specified model, with the Gross Domestic Product (GDP) as the dependent variable, while Capital Expenditure (CAPEXP) and Recurrent Expenditure (REXP) are the independent variables. Data between 1980 – 2013 were collected from secondary sources through the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN). Results showed that in Nigeria, there exist a significant relationship between the government expenditure and economic growth. The study therefore recommends instilling fiscal discipline in government expenditures, and putting in place structural mechanisms to act as surveillance on capital spending so as to boost the nation’s human and social capital.

scholarly journals PENGARUH BELANJA MODAL, BELANJA SOSIAL, DAN PERTUMBUHAN EKONOMI TERHADAP TINGKAT KEMISKINAN DI KOTA MANADO

2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Agustien Sendouw ◽  
Vekie Adolf Rumate ◽  
Debby Ch. Rotinsulu
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
City Government ◽  
Social Spending ◽  
Social Expenditure ◽  
Poverty Level ◽  
The Government ◽  
The City ◽  
Poverty Levels

PENGARUH BELANJA MODAL, BELANJA SOSIAL, DAN PERTUMBUHAN EKONOMI TERHADAP TINGKAT KEMISKINAN DI KOTA MANADO Agustien Sendouw, Vekie A.Rumate, Debby Ch. Rotinsulu Ekonomi Pembangunan – Fakultas Ekonomi dan BisnisUniversitas Sam ratulangi  ABSTRAKKemiskinan merupakan masalah klasik disetiap negara. Usaha pengentasan kemiskinan telah lama dilakukan oleh pemerintah. Variabel yang mempengaruhi tingkat kemiskinan antara lain adalah pengeluaran pemerintah dan pertumbuhan ekonomi. Pengeluaran pemerintah Kota Manado melalui pos belanja modal, belanja sosial, dan pertumbuhan ekonomi diharapkan juga memberi pengaruh terhadap tingkat kemiskinan. Penelitian ini bertujuan untuk mengetahui pengaruh belanja modal, belanjasosial, dan pertumbuhan ekonomi terhadap tingkat kemiskinan di Kota Manado secara parsial maupun secara bersama-sama. Metodeanalisis yang digunakan adalah analisis regresi berganda. Hasil penelitian menunjukan bahwa belanja modal memiliki pengaruh yang negative dan signifikan secara parsial terhadap tingkat kemiskinan sedangkan belanja social dan pertumbuhan ekonomi tidak memiliki pengaruh secara parsial terhadap tingkat kemiskinan di Kota Manado. Secara bersama-sama belanja modal, belanja sosial, dan pertumbuhan ekonomi  tidak  memiliki  pengaruh  terhadap  tingkat  kemiskinan di Kota Manado. Kata Kunci  :   Belanja Modal,  Belanja  Sosial,  Pertumbuhan  Ekonomi, Tingkat  Kemiskinan.  ABSTRACTPoverty is a classic problem in every country. Poverty eradication efforts have been carried out by the government. Variables that affect the level of poverty among other government are government expenditure and economic growth. Manado City Government expenditure through capital expenditure, social expenditure, and economic growth is expected to also make an impact on poverty levels. This research aimed to determine the effect of capital expenditure, social expenditure, and economic growth on poverty levels in Manado partially or jointly. The analytical method used is multiple regression analysis. The results showed that capital expenditure has a negative and significant effect partially to the poverty level while social spending and economic growth do not have a partial effect on poverty levels in the city of Manado. Taken all research variables found that capital expenditures, social expenditure, and economic growth have no effect on the level of poverty in the city of Manado. Key Words : Regional Expenditure, Social Expenditure, Economic Growth, Poverty Level.

scholarly journals A time series analysis of determinants of FDI in Afghanistan: Which one matters the most, security or economic growth?

2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Economic Factors ◽  
Market Economic ◽  
The Government ◽  
The Relationship

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.

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