scholarly journals Labor efficiency, government spending and productivity nexus based on panel ARDL approach: Evidence from selected European countries

2020 ◽  
Author(s):  
Wen Xuezhou ◽  
Rana Yassir Hussain ◽  
Haroon Hussain ◽  
Muhammad Saad ◽  
Sikandar Ali Qalati ◽  
...  
Keyword(s):  
Government Spending ◽  
Negative Impact ◽  
Human Life ◽  
Government Expenditure ◽  
European Countries ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Significant Negative Impact ◽  
The Government

Abstract The current study advocates the role of efficient labor, average gross earnings per person, government spending, and quality of human life in defining the productivity of thirteen European countries. This study applied panel ARDL approach for data period ranging from 2001 to 2016. The results, in the long run, suggested that more efficient labor, increased gross earnings, and higher HDI causes higher productivity in the selected European countries. However, the results for the gross earnings were positive but insignificant. Government spending and inflation had a significant negative impact on productivity. These results suggest to keep inflation in check and limit the government expenditure to human development and to the productive uses in the selected countries.

The effectiveness of government expenditure on economic growth in Botswana

2019 ◽  
Vol 10 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Kafayat Amusa ◽  
Mutiu Abimbola Oyinlola
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Spending ◽  
Empirical Literature ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the relationship between government expenditure and economic growth in Botswana over the period 1985‒2016. The study employed the auto-regressive distributed lag (ARDL) bounds testing approach in investigating the nexus. The study makes the argument that the effectiveness of public spending should be assessed not only against the amount of the expenditure but also by the type of the expenditure. The empirical findings showed that aggregate expenditure has a negative short-run and positive long-run effect on economic growth. When expenditure is disaggregated, both forms of expenditures have a positive short-run effect on economic growth, whereas only a long-run positive impact of recurrent expenditure is observed. The study suggests the need to prioritize scarce resources in productive recurrent and development spending that enables increased productivity. Design/methodology/approach This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis is carried out on both an aggregate and disaggregated level. Government spending is divided into recurrent and development expenditures. Findings This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis hinged on both the aggregate and disaggregated levels. The results of the aggregate analysis suggest that total public expenditure has a negative impact on economic growth in the short run; however, its impact becomes positive over the long run. On disaggregating government spending, the results show that both recurrent and development expenditures have a significant positive short-run impact on growth; however, in the long run, the significant positive impact is only observed for recurrent expenditure. Practical implications The results provide evidence of the diverse effects of government expenditure in the country. In the period under investigation, 73 percent of total government expenditure in Botswana was recurrent in nature, whereas 23 percent was related to development. From the results, it can be observed that although the recurrent expenditure has contributed to increased growth and must be encouraged, it is also pertinent for the Botswana Government to endeavor to place more emphasis on productive development expenditure in order to enhance short- and long-term growth. Further, there is a need to strengthen the growth-enhancing structures and to prioritize the scarce economic resources toward productive spending and ensuring continued proper governance over such expenditures. Originality/value The study provides empirical evidence on the effectiveness of government spending in a small open, resource-reliant middle-income SSA economy and argues that the effectiveness of public spending must be assessed not only against the amount of the expenditure but also on the type or composition of the expenditure. The study contributes to the scant empirical literature on Botswana by employing the ARDL approach to cointegration technique in estimating the long- and short-run impact of government expenditure on economic growth between 1985 and 2016.

scholarly journals Fiscal Sustainability in the European Countries: A Panel ARDL Approach and a Dynamic Panel Threshold Model

2020 ◽  
Vol 12 (20) ◽  
pp. 8505 ◽  
Author(s):  
María del Carmen Ramos-Herrera ◽  
María A. Prats
Keyword(s):  
Threshold Model ◽  
Fiscal Sustainability ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Panel Granger Causality ◽  
Potential Gdp ◽  
The Government ◽  
First Time

We analyze the fiscal sustainability hypothesis for a panel of 20 European Union countries from 2000 to 2019. In particular, we employ new econometric methodologies that, to the best of our knowledge, are applied for the first time to the study of sovereign fiscal policy sustainability in these economies. Specifically, we estimate the panel ARDL technique, distinguishing between short- and long-run coefficients because the order of integration of our variables is not the same. Moreover, a panel threshold model with endogeneity is considered to investigate whether, departing from a particular threshold, there is different behavior between the government primary balance and public debt, both taken as a ratio of potential GDP. Finally, the panel Granger causality test is implemented to determine the direction of causality or the existence of bidirectional causality.

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 Labor efficiency, government spending and productivity nexus based on panel ARDL approach: Evidence from selected European countries

2020 ◽  
Author(s):  
Wen Xuezhou ◽  
Rana Yassir Hussain ◽  
Haroon Hussain ◽  
Muhammad Saad ◽  
Sikandar Ali Qalati ◽  
...  
Keyword(s):  
Government Spending ◽  
European Countries ◽  
Labor Efficiency ◽  
Panel Ardl ◽  
Ardl Approach

Abstract The authors have requested that this preprint be withdrawn due to author disagreement.

scholarly journals The effects of government expenditure on sustainable economic growth in India: assessment of the circular economy

2021 ◽  
Vol 72 (01) ◽  
pp. 74-80
Author(s):  
SMITHA NAYAK ◽  
VARUN S.G. KUMAR ◽  
SUHAN MENDON ◽  
RAMONA BIRAU ◽  
CRISTI SPULBAR ◽  
...  
Keyword(s):  
Economic Growth ◽  
Social Services ◽  
Government Spending ◽  
Central Government ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Secondary Data ◽  
Online Data ◽  
The Government

Government expenditure is linked to the economic growth and is the driving force of the every country. In the post liberalization era, India has been exposed to the dynamics of the world economy due to which India has witnessed a significant impact of Government spending on its economic growth. The objective of this paper is to investigate the effects of the Central Government spending on the growth of the Indian economy over a period, from 2006 to 2016. The online data disclosures of the various ministries have been the major source of secondary data. Co-integration analysis is adopted to evaluate the effect of individual sectorial spending on the economic growth and gross domestic product. The economic spending is classified into 5 sectors namely: General Services, Social Services, Economic Services, Grants in Aid & Contribution and Public debt & Loans for analysis, as disclosed by the sources. The analysis gives us an idea of the various sectors which have a positive impact and the sectors which have a negative impact. The results would play an instrumental role in exploring the sectors in which the government should invest more, thereby contributing to an enhancement in the country’s growth.

scholarly journals Government Expenditure and Industrial Development in Nigeria: Long Run and Short Run Dynamics from ARDL Approach

2019 ◽  
pp. 1-9
Author(s):  
Sarah Elechi Jeff-Anyeneh ◽  
Gideon Kasie Ezu ◽  
Amalachukwu Chijindu Ananwude
Keyword(s):  
Industrial Development ◽  
Government Expenditure ◽  
Industrial Sector ◽  
Public Fund ◽  
Capital Projects ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Industrial Performance ◽  
The Government

This study estimated the long run and short dynamics between government expenditure and industrial development in Nigeria from 1981 to 2016 with the view to evaluating how the industrial sector has been influenced by variation in government expenditure. The Autoregressive Distribute Lag (ARDL) was the technique applied. We found with dismay that government expenditure has not positively affected industrial development in Nigeria both in long run and short run despite the continuous rise in government expenditure and various policies of the government towards improving industrial performance in Nigeria. Funds allocated for environmental factors of production such as electricity, road, water, communication, etc. should be appropriately utilized. Political officer holders, contractors executing capital projects, people in corridors of powers, etc. who are embroil in misappropriation or embezzlement of public fund should be properly tried and punished if found guilty.

scholarly journals Fiscal Policy Shocks and Private Consumption in Nigeria: Blanchard-Perotti (2002) Approach

2015 ◽  
Vol 7 (6(J)) ◽  
pp. 42-60
Author(s):  
OSENI Isiaq Olasunkanmi
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Private Consumption ◽  
Government Expenditure ◽  
Structural Var ◽  
Long Run ◽  
Short Period ◽  
Policy Shocks ◽  
Negative Effect ◽  
The Government

This paper examines the effects of fiscal policy shocks on private consumption in Nigeria. Albeit, there is a considerable number of works examining the effects of fiscal policy shocks on private consumption globally but in Nigeria, no study has used the structural VAR approach by Blanchard and Perotti (2002) as used in this paper. This approach relies on institutional information about the tax and transfer systems and the timing of tax collection to identify the automatic response of taxes and spending to private consumption as well as to infer fiscal shocks. The key result of this paper is that positive government spending shocks in Nigeria have an instantaneous negative effect on private consumption. The effect becomes significant in the period following the shock. Also, positive tax shocks have a negative effect on private consumption in the period of a shock and the effect becomes statistically insignificant afterwards. On this premises, one-off changes in government spending and taxes in Nigeria are long-lived and short-lived respectively. Thus, the government expenditure changes can be used to support private consumption in the long-run while that of taxes can only be used to support private consumption for a short period.

scholarly journals THE CROWDING-OUT EFFECT OF FISCAL POLICY ON CAPITAL INFLOWS IN NIGERIA

2020 ◽  
pp. 043
Author(s):  
Abdurrauf Idowu Babalola ◽  
Saidat Oluwatoyin Onikosi-Alliyu
Keyword(s):  
Fiscal Policy ◽  
Budget Deficit ◽  
Negative Impact ◽  
Capital Inflows ◽  
Crowding Out ◽  
Explanatory Variables ◽  
Long Run ◽  
Significant Negative Impact ◽  
Short Run ◽  
The Government

The study investigated the effect of fiscal policy on crowding out capital inflows in Nigeria using annual data between 1970 and 2011 by using the foreign direct investment (FDI) as proxy to capital inflows represent the dependent variable, budget deficit (BD), foreign borrowing (FL) and domestic borrowing (DL) as proxies to fiscal policy are placed as explanatory variables. Cointegration and ECM technique were employed. Our finding showed that in both the short and long run, BD does not crowd out but rather crowd in FDI. In the short run, DL averagely has significant positive impact on FDI.  However, in the long run, DL has significant negative impact on FDI. More so, in both short run and long run period, FL has significant negative impact on FDI, therefore, FL crowds out FDI. The speed of adjustment back to equilibrium showed that the explanatory variables have capacity to adjust FDI significantly. The study recommends that the government could try to be aware of the implication of its fiscal policy in running a budget deficit and making proper decision in sourcing for funds to finance the deficit. Foreign borrowing is less expensive in financing budget deficit, so if the government must borrow, it should give preference to this source. Generally, the government should reduce deficit because of the implications inherent in it.

On the Major Differences between the Banking Systems of the EAEU States

2020 ◽  
Vol 26 (4) ◽  
pp. 397-406
Author(s):  
T. E. Chekanova
Keyword(s):  
Financial Stability ◽  
Systems Approach ◽  
Negative Impact ◽  
Banking Regulation ◽  
Member States ◽  
Banking Systems ◽  
Significant Negative Impact ◽  
The Difference ◽  
The Government ◽  
Major Factors

The presented study examines the problems of integration of the national banking systems of the member states of the Eurasian Economic Union (EAEU).Aim. The study aims to examine the major differences in various aspects of functioning of banking systems in the EAEU member states in terms of their impact on integration processes.Tasks. The author identifies the most prominent features of the banking systems of the EAEU states; reveals the depth of the existing differences through a comparative analysis of various indicators of national banking systems; outlines ways of overcoming integration problems associated with differences in the banking sectors of the Union states.Methods. This study is based on universal general scientific methods and elements of comparative, functional, and economic analysis within the framework of a systems approach. The author uses regulatory documents and banking reports of the EAEU states, statistical and analytical materials of the Eurasian Economic Commission (EEC), and data of Moody’s international rating agency.Results. The study identifies a number of aspects that contain the major differences in the functioning of banking systems in the EAEU member states; highlights the disproportions in the scale, level of development, financial stability, and risks of the banking spheres of the Union states; comparatively analyzes the proportion of banking and non-banking structures in the system and the share of the government and non-resident companies in the capital of banks; marks the difference in the pricing of banking services; determines differences in the existing approaches to banking regulation and the established standards; analyzes the major differences in the legislative acts of the central banks and governments of the EAEU member states and in the terms and definitions used. According to the results of the study, the major factors hindering the development of integration processes between the banking systems of the EAEU states are identified.Conclusions. The existing differences between the banking systems of the EAEU countries are diverse and multifaceted. The author states that the aspects addressed in this study have a significant negative impact on the further development of integration processes, describing the major directions and actions of the member states aimed at minimizing the exiting differences, which are required to facilitate the convergence of the states and the transition towards a common financial market.

scholarly journals The Effects of Government Education Spending on School Enrollment in Indonesia

2020 ◽  
Vol 20 (1) ◽  
pp. 288
Author(s):  
Megawati Megawati
Keyword(s):  
Government Spending ◽  
Government Expenditure ◽  
Probit Model ◽  
School Enrollment ◽  
Education Spending ◽  
Cross Sectional ◽  
Interaction Terms ◽  
Education Data ◽  
Government Education ◽  
The Government

Government expenditure for education increases every year for the implementation of education sector including to increase the number of enrollment rate. However, there are some children who do not enroll in school especially senior high school-aged children. This study examines the effects of government spending on education on school enrollment in Indonesia. This research uses cross-sectional data from the National Socioeconomic Survey (Susenas) and the government spending on education data for four years. This study uses probit model by employing the government education spending as the main factor. The control variables used in this study consist of parents’ education, household expenditure, male, urban, birth order, the number of siblings, missing parent, GRDP per capita, year dummy, and interaction terms among some variables. The observation is divided into two groups of age: 7-15 and 16-18. The results show that the government education spending has a positive and significant effect on school enrollment in Indonesia. In addition, the interaction terms show that the government education spending is associated with greater probability of school enrollment for poor children and for the girls.

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