scholarly journals The Complementary Effect between Private Consumption and Government Spending: Effect on the Economy

2021 ◽  
Vol 5 (4) ◽  
pp. 497-511
Author(s):  
Kida Nakije
Keyword(s):  
Government Spending ◽  
Private Consumption ◽  
Secondary Data ◽  
Government Expenditures ◽  
Final Consumption ◽  
Positive Effects ◽  
Normality Test ◽  
Complementary Effect ◽  
The Relationship ◽  
The Empirical Analysis

This paper analyzes the relationship between final consumption and government spending, using the correlation and linear regression model. The objective of the research is whether government expenditures are complementary, substitute, or not related to private consumption to give positive effects on the economy. Methodology, quantitative secondary data were obtained from the World Bank, for five countries and processed with SPSS, 21. The empirical analysis was verified through, Bivariate and Partial correlation and normality test. The Result, first, shows that government spending complements and replaces final consumption. Second, it is also confirmed that even when interacting with other variables, the complementary effect of final consumption is not eliminated despite the shocks coming from government spending. Third, by adding other variables to the model, the issue of complementarity and substitutability of the two main variables is not lost. As a result, findings, confirm that private consumption (InCt) and government spending (InGt), Gross Savings (GS), and per capita income (GDPpc), are in statistically significant and positive relationships with each other. The novelty of the paper is, government expenditures cause an increase in private consumption is to high value, showing the complementary effect of government expenditures on private consumption. Based on health expenditures, education, public order, internet provided by the state have increased the demand of families for these services, causing an increase in the share of services provided by the private sector.JEL Classification: E21; H5; E2; R0. Doi: 10.28991/esj-2021-01292 Full Text: PDF

scholarly journals The effect of government expenditures on Indonesia economic growth

2015 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Nurlina Nurlina
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Fiscal Policy ◽  
Government Spending ◽  
Government Expenditure ◽  
Secondary Data ◽  
Great Caution ◽  
Series Design ◽  
National Economic ◽  
The Relationship

The debate on the effect of government expenditure on economic growth has still happened in relation to classical groups and Keynesians view. The aim of this study confirms the relationship, with the application of the case in Indonesia. Gov-ernment expenditures are aggregated, while economic growth is measured by gross domestic product. With time series design, the secondary data used covers the period of 2004 to 2013. At first, the data were analyzed descriptive-graphics, while the hypothesis testing using t-test. The results obtained indicate that government spending has a positive and significant influence to economic growth. Thus, spend-ing and investment forms by government as a form of fiscal policy must be done with great caution in order to avoid misallocation or inequality in the distribution of inter-sector development, given the importance of its role as a pending national economic growth.

scholarly journals Financial Deepening and Domestic Investment in Nigeria

2016 ◽  
Vol 8 (3) ◽  
pp. 40 ◽  
Author(s):  
Frances N. Obafemi ◽  
Chukwuedo S. Oburota ◽  
Chukwunonso V. Amoke
Keyword(s):  
Structural Break ◽  
Unit Root Test ◽  
Secondary Data ◽  
Financial Deepening ◽  
Domestic Investment ◽  
Causality Test ◽  
Interest Rate Spread ◽  
Integration Test ◽  
The Relationship ◽  
The Empirical Analysis

The study examined the relationship between financial deepening and investment in Nigeria. Secondary data spanning from 1970 to 2013 was used for the empirical analysis. It adopted the Gregor-Hansen Endogenous structural break methodology and the supply-leading hypothesis in building the model. The study also employed the Unit Root Test, Co Integration Test and Granger Causality Test. It discovered a unidirectional causality, running from financial deepening to investment. It also found that the financial deepening has a statistically significant impact on domestic investment. Based on these empirical findings, the study recommended increased integration of the credit and thrift societies, cooperatives, rural saving organization etc into the mainstream formal financial sector in order to shore up the mobilization of savings for investment. It also recommended subsidizing the operational cost of financial intermediation so as to narrow the gap in interest rate spread. These steps when judiciously executed will ultimately promote financial deepening by easing the rigidities involved in mobilizing and accessing of credit for investment purpose.

scholarly journals A Pitfall with Estimated DSGE-Based Government Spending Multipliers

2013 ◽  
Vol 5 (4) ◽  
pp. 141-178 ◽  
Author(s):  
Patrick Fève ◽  
Julien Matheron ◽  
Jean-Guillaume Sahuc
Keyword(s):  
Government Policy ◽  
Government Spending ◽  
Private Consumption ◽  
Government Expenditures ◽  
Long Run ◽  
The Government ◽  
Endogenous Component

This paper examines issues related to the estimation of the government spending multiplier (GSM) in a DSGE context. We stress a source of bias in the GSM arising from the combination of endogenous government expenditures and Edgeworth complementarity between private consumption and government expenditures. Due to cross-equation restrictions, omitting the endogenous component of government policy at the estimation stage would lead an econometrician to underestimate the degree of Edgeworth complementarity and, consequently, the long-run GSM. An estimated version of our model with US postwar data shows that this bias matters quantitatively. The results are robust to a number of perturbations. (JEL E13, E23, E32, E62, H50)

scholarly journals PENGARUH PEMBERIAN KREDIT MODAL KERJA TERHADAP PENDAPATAN PEDAGANG KECIL ( Studi Kasus Pada PD. BPR NTB LOBAR CABANG GUNUNGSARI TAHUN 2018 )

2020 ◽  
Vol 6 (2) ◽  
pp. 132
Author(s):  
Suhardi Ansor ◽  
Baiq Dewi Lita Andiana
Keyword(s):  
Secondary Data ◽  
Test Reliability ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
Working Capital ◽  
Normality Test ◽  
Linearity Test ◽  
The Relationship ◽  
Small Traders ◽  
Test Correlation

This study aims to determine whether there is an influence on the granting of working capital loans to the income of small traders in PD. BPR NTB West Lombok Gunungsari Branch. This type of research is associative research which aims to determine the relationship between two or more variables. The data used in this study are primary data and secondary data. Primary data is data taken directly from the field, while secondary data is data obtained through intermediary media such as books, records, evidence and archives published or not. Data analysis in this study uses validity test, reliability test, normality test, linearity test , simple linear regression test, correlation test and coefficient of determination. Based on the results of the tests that have been carried out, it can be concluded that the granting of working capital loans has a significant influence on the income level of small traders.

scholarly journals Analysis of the Effect of Government Expenditures on School Enrollment in Pakistan

2021 ◽  
Vol 3 (1) ◽  
pp. 27-35
Author(s):  
Muhammad Idrees ◽  
Farah Khan ◽  
Muhammad Sufian Bin Omar Fauzee
Keyword(s):  
Government Expenditure ◽  
National Income ◽  
Secondary Data ◽  
School Enrollment ◽  
Government Expenditures ◽  
Living Standard ◽  
School Enrolment ◽  
Positive Effects ◽  
The Government

Purpose: No one can deny the importance of education as it not only improves living standard but also promotes self-esteem as well as improves social development. The role of the government cannot be overlooked in the development of education. Therefore, the main purpose of this study is to analyses the role of government through national income and government expenditure on education through school enrolment in Pakistan. Design/Methodology/Approach: We have used secondary data over the period of 2000 to 2017 for empirical analysis.  We used descriptive statistics analysis, and the method of least squares is used to obtain empirical results.  Findings: The result shows that national income and government expenditures have positive effects on school enrollment, indicating when national and government expenditures increase, ultimately school enrolment also increases in the country. Implications/Originality/Value: Our results of this study suggest that national income needs to be increases and government spending also needs to be increases in order to improve education in the country.

Is the Relationship Between Government Spending and Private Consumption in Egypt Symmetric?

2020 ◽  
Vol 14 (3) ◽  
pp. 285-308
Author(s):  
Imadeddin Ahmed Almosabbeh
Keyword(s):  
Government Spending ◽  
Private Consumption ◽  
Jel Classification ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach ◽  
The Relationship ◽  
Cointegration Relationship ◽  
Nonlinear Autoregressive

The aim of this study, using Egyptian data from 1970 to 2016, is to explore the relationship between government spending and private consumption spending and to understand whether the relationship between the two is symmetric. The study uses the autoregressive distributed lag (ARDL) approach to explore a cointegration relationship between the two variables, and the nonlinear autoregressive distributed lag (NARDL) approach to test the hypothesis of a symmetric relationship between the two variables. By applying the ARDL approach, the study concludes that the effect of government spending on consumption spending is not significant in the long term. By applying the NARDL approach, the study concludes that: the hypothesis of the presence of a symmetric relationship is not accepted, there is a crowding-out relationship from the positive shocks of government spending and the substitutability coefficient between the two types of spending is 0.8699. JEL Classification: E12, E21, F62, H50

scholarly journals Market Risks, Firms’ Size and Financial Performance: Reality or Illusion in Microfinance Institutions in Kenya

2020 ◽  
Vol 12 (11) ◽  
pp. 118
Author(s):  
Kahihu Peter Karugu ◽  
Wachira D. Muturi ◽  
Stephen M. A. Muathe
Keyword(s):  
Financial Performance ◽  
Dynamic Capabilities ◽  
Secondary Data ◽  
Market Risk ◽  
Microfinance Institutions ◽  
Financial Reports ◽  
Normality Test ◽  
Microfinance Institution ◽  
Using Data ◽  
The Relationship

The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non–experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.

Credit constraints and Rural Migration: Evidence from Six Villages in Uttar Pradesh

2018 ◽  
Vol 15 (3) ◽  
pp. 389-398
Author(s):  
Ruchi Singh
Keyword(s):  
Credit Constraints ◽  
Uttar Pradesh ◽  
Binary Logistic Regression ◽  
Binary Logistic Regression Model ◽  
Male Migration ◽  
Rural Economies ◽  
And Migration ◽  
The Relationship ◽  
The Empirical Analysis

Rural economies in developing countries are often characterized by credit constraints. Although few attempts have been made to understand the trends and patterns of male out-migration from Uttar Pradesh (UP), there is dearth of literature on the linkage between credit accessibility and male migration in rural Uttar Pradesh. The present study tries to fill this gap. The objective of this study is to assess the role of credit accessibility in determining rural male migration. A primary survey of 370 households was conducted in six villages of Jaunpur district in Uttar Pradesh. Simple statistical tools and a binary logistic regression model were used for analyzing the data. The result of the empirical analysis shows that various sources of credit and accessibility to them play a very important role in male migration in rural Uttar Pradesh. The study also found that the relationship between credit constraints and migration varies across various social groups in UP.

PERSEPSI PETERNAK PADA KEPEMIMPINAN PENDAMPING DAN HUBUNGANNYA DENGAN PRODUKTIVITAS USAHA TERNAK DI PAGUYUBAN AL-AWWALIYAH, PASIRWANGI, GARUT, JAWA BARAT

2019 ◽  
Vol 12 (1) ◽  
pp. 42-51
Author(s):  
Dwi Indah Sulistiani ◽  
Ujang Maman ◽  
Junaidi J
Keyword(s):  
Data Analysis ◽  
Secondary Data ◽  
Primary Data ◽  
Leadership Qualities ◽  
Chi Square ◽  
Education Experience ◽  
Spss Software ◽  
Chi Square Analysis ◽  
And Behavior ◽  
The Relationship

Objective of this research; 1) determine the perception of ranchers against the properties and behavior of the leadership of the companion in the Society of Al-Awwaliyah 2) analyze the relationship between productivity breeder with productivity of livestock in the Society of Al-Awwaliyah 3) identify the relationship perceptions of ranchers against the leadership companion with productivity of livestock in the Society of Al-Awwaliyah , The data used in this study are primary and secondary data. Primary data were obtained from questionnaires which stem from ranchers while secondary data sourced from literature in the form of books and articles. Data processing was performed using Chi-square analysis using SPSS software version 21. One of the factors relating to the productivity of ranchers is the perception of ranchers against the leadership of their companion. Leadership companion views of the nature and behavior of which is owned by a companion. Productivity ranchers indirectly related to the productivity of the cattle business. Characteristics breeder visits of age, years of education, experience ranchers, and businesses in addition to ranchers. The results of data analysis showed that there is a significant relationship between business other than ranchers with ranchers productivity. The relationship between the perception of the nature of the companion breeder with productivity ranchers produce Pearson Chi-Square value is 9.751 and Asymp. Sig. (2-sided) of 0.002. This is due to interest ranchers against leadership qualities possessed by a companion who produce prolific ranchers. Ranchers consider that a companion of his leadership qualities are ideal as a companion.

DETERMINAN INFLASI DI INDONESIA PERIODE 1980-2015

2016 ◽  
Vol 21 (1) ◽  
pp. 1-7
Author(s):  
Risna Risna
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Government Spending ◽  
Positive Impact ◽  
Secondary Data ◽  
Quantitative Approach ◽  
State Spending ◽  
Factors Affecting ◽  
The Interest Rate

This study aims to determine the effect of government spending, the money supply, the interest rate of Bank Indonesia against inflation.This study uses secondary data. Secondary data were obtained directly from the Central Bureau of Statistics and Bank Indonesia. It can be said that there are factors affecting inflationas government spending, money supply, and interest rates BI. The reseach uses a quantitative approach to methods of e-views in the data. The results of analysis of three variables show that state spending significantand positive impact on inflationin Indonesia, the money supply significantand negative to inflationin Indonesia, BI rate a significantand positive impact on inflation in Indonesia

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