scholarly journals Analisis kausalitas antara pengeluaran pemerintah dan pertumbuhan ekonomi di Pulau Sumatera

2019 ◽  
Vol 15 (1) ◽  
pp. 15-34
Author(s):  
Nadine Brillianta Hanifah ◽  
Syamsurijal A Kadir ◽  
Anna Yulianita
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Granger Causality ◽  
Government Spending ◽  
Government Expenditure ◽  
The Other ◽  
West Sumatra ◽  
Causality Relationship ◽  
Causality Model ◽  
The Relationship

This study aims to investigate the relationship between government expenditure and economic growth in each province on the island of Sumatra during the period 2007-2016 using panel data. The method used is a quantitative approach by applying the Granger Causality model. The findings of this study indicate that there are no two-way relationships from the 10 provinces in Sumatra. But there is a one-way relationship between government spending and economic growth, which is found in the Province of West Sumatra and Bengkulu Province. Whereas the other 8 provinces have no one-way and two-way causality relationship

scholarly journals Government Expenditure and Economic Growth in South Africa: A Vector Error Correction Modelling and Granger Causality Test

2017 ◽  
Vol 9 (4) ◽  
pp. 164
Author(s):  
Kagiso Molefe ◽  
Ireen Choga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Error Correction ◽  
Granger Causality ◽  
Time Series Data ◽  
Government Expenditure ◽  
Series Data ◽  
Vector Error Correction ◽  
Vector Error ◽  
The Relationship

Previous studies generally find mixed empirical evidence on the relationship between government spending and economic growth. This study re-examine the relationship between government expenditure and economic growth in South Africa for the period of 1990 to 2015 using the Vector Error Correction Model and Granger Causality techniques. The time series data included in the model were gross domestic Product (GDP), government expenditure, national savings, government debt and consumer price index or inflation. Results obtained from the analysis showed a negative long-run relationship between government expenditure and economic growth in South Africa. Furthermore, the estimate of the speed of adjustment coefficient found in this study has revealed that 49 per cent of the variation in GDP from its equilibrium level is corrected within of a year. Furthermore, the study discovered that the causality relationship run from economic growth to government expenditure. This implied that the Wagner’s law is applicable to South Africa since government expenditure is an effect rather than a cause of economic growth. The results presented in this study are similar to those in the literature and are also sustained by preceding studies.

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 The Impact of Public Expenditure on Economic Growth: A Review of International Literature

2019 ◽  
Vol 19 (2) ◽  
pp. 81-101
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Government Spending ◽  
Public Expenditure ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Empirical Literature ◽  
The Impact ◽  
The Relationship

Abstract Research background: Although a number of studies have been conducted on the relationship between public expenditure and economic growth, it is difficult to tell with certainty whether or not an increase in public expenditure is good for economic growth. This lack of consensus on the results of the previous empirical findings makes this study of paramount importance as we take stock of the available empirical evidence from the 1980s to date. Purpose: In this paper, theoretical and empirical literature on the relationship between government expenditure and economic growth has been reviewed in detail. Focus was placed on the review of literature that assessed the impact of government spending on economic growth. Research Methodology: This study grouped studies on the impact of public expenditure on economic growth based on their results. Three groups emerged – positive impact, negative impact and no impact. This was followed by a review of each relevant study and an evaluation of which outcome was more prevalent among the existing studies on the subject. Results: The literature reviewed has shown that the impact of government spending on economic growth is not clear cut. It varies from positive to negative; with some studies even finding no impact. Although the impact of government spending on economic growth was found to be inconclusive, the scale tilts towards a positive impact. Novelty: The study provides an insight into the relationship between public expenditure and economic growth based on a comprehensive review of previous empirical evidence across various countries since the 1980s.

scholarly journals The Reform in Government Expenditure and the Standard of Living in Bahrain

2021 ◽  
Author(s):  
Fatema Alaali
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Time Series Data ◽  
Government Expenditure ◽  
Standard Of Living ◽  
Series Data ◽  
Vector Error Correction ◽  
Education And Health ◽  
Oil Revenues ◽  
The Relationship

The drop of oil prices since the second half of 2014 have affected the credit risk and liquidity situation in Bahrain. Therefore, Bahrain have implemented substantial economic diversification in the economic structure including manufacturing, refining, tourism, trade and finance. With the recognition of the importance of governments expenditure restructuring, Bahrain government introduced number of initiatives such as streamlining government expenditure, increasing revenues, and redirecting government subsidies towards eligible citizens. Understanding the relationship between revenues, government spending and economic growth is an essential perception in evaluating the efficiency of government’s strategy in managing its resources and the impact on the standard of living in any country. This chapter examines the relationship between total government expenditure as well as sectoral government spending (specifically education and health sectors), oil revenues and the economic growth of Bahrain using time series data over the period 1989–2015. To achieve this aim, the vector error correction model (VECM) is employed. In order to ensure the sustainability of resources and maintain economic growth, Bahrain should continue managing its expenditure, by cutting down expenses on certain sectors through privatization, and increasing spending on health and education sectors.

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 KAUSALITAS UTANG LUAR NEGERI, TABUNGAN DOMESTIK, DAN PERTUMBUHAN EKONOMI

2015 ◽  
Vol 15 (1) ◽  
pp. 1
Author(s):  
Lumadya Adi
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Analysis Tool ◽  
Asean Member ◽  
Foreign Borrowing ◽  
Domestic Savings ◽  
Causality Relationship ◽  
The Relationship

ABSTRACTThe purpose of this study was to examine the causality relationship between foreign borrowing with domestic savings; causality relationship between foreign borrowing and economic growth for the three ASEAN member countriesare Indonesia, Malaysia, and Thailand. The analysis tool is used Granger Causality. If there are two variables X and Y then the relationship could happen between them as follows: (1). X cause Y; (2). Y cause X; (3). Both directions Ycause X and X cause Y; and (4). There is no relationship between X and Y. The results of the study as follows: 1. There is no causality between foreign borrowing with domestic savings Indonesian state. 2. There is no causality between foreign borrowing with domestic savings of Malaysia. 3. There is causality in both directions between the foreign borrowingwith domestic savings of Thailand. 4. There is the direction of causality between foreign borrowing to economic growth in Indonesia. 5. There is no causality between foreign borrowing and economic growth of Malaysia. 6. There is no causality between foreign borrowing and economic growth of Thailand. ABSTRAKSIPenelitian ini bertujuan untuk menguji hubungan kausalitas antara utang luar negeri dengan tabungan domestik; hubunganutang luar negeri dengan pertumbuhan ekonomi di tiga negara anggota ASEAN, yaitu Indonesia, Malaysia, dan Thailand.Analisa yang digunakan adalah Kausalitas Granger. Bila terdapat dua variabel X dan Y maka hubungan yang dapat terjadi di antara kedua variabel tersebut adalah sebagai berikut:(1) X berhubungan dengan Y; (2) Y berhubungan dengan X; (3) Keduanya saling berhubungan, yaitu X berhubungan dengan Y dan Y berhubungan dengan X; (4) Tidak ada hubungan di antara keduanya. Hasil penelitian ini menunjukkan bahwa: 1. Tidak ada hubungan antara utang luar negeri dengan tabungan domistik di Indonesia; 2. Tidak ada hubungan antara utang luar negeri dengan tabungan domistik di Malaysia; 3. Terdapat hubungan antara utang luar negeri dengan tabungan domistik  di Thailand; 4. Terdapat hubungan antara utang luar negeri dengan pertumbuhan ekonomi di Indonesia; 5. Tidak terdapat hubungan antara utang luar negeri dengan pertumbuhan ekonomi di Malaysia; 6. Tidak terdapat hubungan antara utang luar negeri dengan pertumbuhan ekonomi di Thailand.

scholarly journals Government expenditure and economic growth in the European Union countries: New evidence

2017 ◽  
Vol 36 (36) ◽  
pp. 127-133 ◽  
Author(s):  
Marta Pascual Sáez ◽  
Santiago Álvarez-García ◽  
Daniela Castañeda Rodríguez
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Government Spending ◽  
Government Expenditure ◽  
The European Union ◽  
The Public ◽  
European Union Countries ◽  
The Impact ◽  
New Evidence ◽  
The Relationship

AbstractThis paper provides new evidence of the impact of government spending on economic growth in the European Union countries. Governments can adjust their levels of spending in order to influence their economies, although the relationship between these variables can be positive or negative, depending on the countries included in the sample, the period of estimation and the variables which reflect the size of the public sector. The results obtained based on regression and panel techniques suggest that government expenditure is not clearly related with economic growth in the European Union countries over the period 1994-2012.

scholarly journals Which Types of Education are Important for Economic Growth?

2019 ◽  
Vol 11 (4) ◽  
pp. 1
Author(s):  
Yutaka Kurihara
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Positive Impact ◽  
Internet Usage ◽  
Quality Education ◽  
The Other ◽  
Educational Systems ◽  
High Quality ◽  
High Quality Education ◽  
The Relationship

The relationship between education and economic growth has been discussed on numerous occasions, and there is a consensus that education plays an important role toward economic growth. This paper empirically examines 55 countries’ panel data to determine which types of education are playing important roles for achieving economic growth. The results showed that the improvement of educational systems, finance skill, Internet usage, and English proficiency has a positive impact on economic growth. On the other hand, educational systems and Internet usage also shrink inequality in the economy. High quality education for students is important for attaining economic growth, and it would confer student’s chances and opportunities and promote sound economic growth.

Empirical research on the relationship between natural gas consumption and economic growth in the Northeast Asia

2018 ◽  
Vol 29 (2) ◽  
pp. 216-231 ◽  
Author(s):  
Li Zhi-Guo ◽  
Han Cheng ◽  
Wei Dong-Ming
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Natural Gas ◽  
Granger Causality ◽  
Northeast Asia ◽  
Gas Consumption ◽  
Causality Relationship ◽  
Natural Gas Consumption ◽  
The Impact ◽  
The Relationship

The Northeast Asia, as one of the most rapidly development regions, has a large amount of energy consumption. Therefore, it is very significant to study the relationship between natural gas consumption and economic growth in the Northeast Asia. This paper builds Panel Data Model to study the relationship between natural gas consumption and economic growth in China, Japan, and Korea from 1991 to 2015, on the basis of analyzing the impact mechanism that natural gas has on economic growth. This paper finds that the Japan’s elasticity coefficient of natural gas consumption is the highest, whereas Korea’s is the lowest, and China’s is in the middle of these two countries, because of countries’ different development level and energy consumption mode. Moreover, the results of Granger causality relationship test show that there is only one-way Granger causality relationship between natural gas consumption and economic growth of China, but no causal relationship is found for Japan and Korea.

scholarly journals Relationship between Financial Development and Economic Growth: Empirical Evidence in Indonesia

2018 ◽  
Vol 10 (12) ◽  
pp. 37 ◽  
Author(s):  
Hafnida Hasan
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Granger Causality ◽  
Financial Development ◽  
Trade Openness ◽  
Government Expenditure ◽  
Long Run ◽  
Push Forward ◽  
Using Data ◽  
The Relationship

The aim of this paper to examine the relationship between financial development and economic growth in Indonesia by using data from 1986 until 2014. Johansen co-integration and Granger causality are utilized to analyze the data. The financial development is measured by the ratio of broad money and other control variables such as trade openness and government expenditure. The finding indicates that there is long run relationship between financial development and economic growth. Meanwhile, a unidirectional relationship had been found, it come from economic growth to financial development. Therefore, a policy to increase economic growth will push forward in proper to improve financial development in Indonesia.

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