scholarly journals Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality

Author(s):  
Ayoub Zeraibi ◽  
Daniel Balsalobre-Lorente ◽  
Khurram Shehzad

With rapid economic growth, the Chinese government expenditures at various levels have increased adequately. At the same time, the environmental quality in China has deteriorated significantly. In this study, provincial-level data for 31 Chinese provinces during 2007–2017 are used to investigate the impacts of government expenditure on the emissions of three specific measures of environmental degradation. The main objective of this study is to examine the influence of government expenditures, economic growth per capita, environment protection expenditure, and added second-sector value on environmental quality by measuring sulfur dioxide (SO2), chemical oxygen demand (COD), and ammonia nitrogen emissions (AN). Moreover, the study applied the generalized method of moments (GMM) and the fully modified least square (FMOLS) to estimate the co-integration relationship among the underlying factors. The results demonstrate a significant direct effect of government expenditure on improving environmental quality overall in the Chinese provinces, which increases with the level of economic growth. However, the results also confirmed the inverted N-shaped relationship between the pollution factor and economic growth per capita. Our key findings lead toward the manifestation and emphasis of the importance of appropriate policies for restoring government expenditure and, at the same time, strengthening the relationship between the industrial sector and environmental policy standards. Significantly, governments in developing countries should allocate larger budgets for environmental projects in their fiscal reforms for the sake of moving to greener and more inclusive economies with low-carbon activities.

2014 ◽  
Vol 222 ◽  
pp. 17-39
Author(s):  
THÀNH SỬ ĐÌNH

The effect of government relative size on economic growth is a contentious issue. This paper is undertaken to test the relationship between government size and economic growth in Vietnam. The study is a panel data investigation, involving 60 provinces over the period 1997–2012. Various measures of government size are defined: provincial government expenditure as a share of gross provincial product (GPP), provincial government revenue as a share of GPP, real provincial government expenditure per capita, and real provincial government revenue per capita. Empirical estimates are employed by conducting Difference Generalized Method of Moments method proposed by Arellano and Bond (1991) and Pooled Mean-Group method by Pesaran, et al. (1999). These tests reveal: (i) provincial government expenditure (revenue) as a share of GPP has a significantly negative effect on economic growth; and (ii) the real government expenditure (revenue) per capita has a significantly positive effect on economic growth. It is also found that the long-run and short-run coefficients of government expenditure size are significant and negative, that the correction mechanism from the short run disequilibrium to the long run equilibrium is not convergent, and that government employment has a negative correlation with economic growth.


2018 ◽  
Vol 2 (1) ◽  
pp. 14-29
Author(s):  
Ryan Ezkirianto ◽  
Muhammad Findi Alexandi

This paper attempts to analyse the two-way relationship between human development and economic growth for 33 provinces in Indonesia during six years period: 2006–2011. The various links in each variabel were analyzed with description analysis, such education, government spending on health and education, total government expenditure, income distribution, and density. The quantitatif analysis used two-stage least square (2SLS) method.  The result shows that there is a strong positive relationship between human development index and GDRP per capita, while education, government spending on health and education, total government expenditure, and income distribution are the important links determining the strength of relationship between human development and economic growth. Keywords: human development, economic growth


2018 ◽  
Vol 2 (1) ◽  
pp. 14-29
Author(s):  
Ryan Ezkirianto ◽  
Muhammad Findi Alexandi

This paper attempts to analyse the two-way relationship between human development and economic growth for 33 provinces in Indonesia during six years period: 2006–2011. The various links in each variabel were analyzed with description analysis, such education, government spending on health and education, total government expenditure, income distribution, and density. The quantitatif analysis used two-stage least square (2SLS) method.  The result shows that there is a strong positive relationship between human development index and GDRP per capita, while education, government spending on health and education, total government expenditure, and income distribution are the important links determining the strength of relationship between human development and economic growth. Keywords: human development, economic growth


2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Suhaily Maizan Abdul Manaf ◽  
Shuhada Mohamed Hamidi ◽  
Nur Shafini Mohd Said ◽  
Siti Rapidah Omar Ali ◽  
Nur Dalila Adenan

Economic performance of a country is mostly determined by the growth and any other internal and external factors. In this study, researchers purposely focused on Malaysian market by examining the relationship between export, inflation rate, government expenditure and foreign direct investment towards economic growth in Malaysia by applying the yearly data of 47 years from 1970 to 2016 using descriptive statistics, regression model and correlation method analysis. By applying Ordinary Least Square (OLS) method, the result suggests that export, government expenditure and foreign direct investment are positively and significantly correlated with the economic growth. However, inflation rate has negative and insignificant relationship with the economic growth. The outcome of the study is suggested to be useful in providing the future research direction towards the economic growth in Malaysia. Keywords: economic growth; export; inflation rate; government expenditure


2016 ◽  
Vol 5 (4) ◽  
pp. 56
Author(s):  
Oyediran, Leye Sherifdeen ◽  
Sanni, Ibrahim ◽  
Adedoyin, Lukman ◽  
Oyewole Olabode Michael

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.


Author(s):  
Friday Osaru Ovenseri Ogbomo ◽  
Precious Imuwahen Ajoonu

This paper examined the impact of Exchange Rate Management on economic growth in Nigeria between 1980 and 2015. The study was set to gauge how the management of exchange rate in Nigeria has impacted the economy. The study employed the Ordinary Least Square (OLS) method in its analysis. Co-integration and Error Correction Techniques were used to establish the Short-run and Long-run relationships between economic growth and other relevant economic indicators. The result revealed that exchange rate management proxy by various exchange rates regimes in Nigeria was not germane to economic growth. Rather, government expenditure, inflation rate, money supply and foreign direct investment significantly impact on economic growth in Nigeria. It is against this backdrop that the Nigerian economy must diversify her export base to create room for more inflow of foreign exchange.  


Author(s):  
Sharif Hossain ◽  
Rajarshi Mitra ◽  
Thasinul Abedin

Although the amount of foreign aid received by Bangladesh as a share of GDP has declined over the years, Bangladesh remains one of the heavily aiddependent countries in Asia. The results of most empirical studies that have examined the effectiveness of foreign aid or other forms of development assistance for economic growth have varied considerably depending on the econometric methodology used and the period of study. As the debate and controversy over aid-effectiveness for economic growth continue to grow, this paper reinvestigates the short-run and long-run effects of foreign aid received on percapita real income of Bangladesh over the period 1972–2015. A vector error correction model is estimated. The results indicate lack of any significant short-run and long-run relation between foreign aid and per-capita real income. Results further indicate short-run unidirectional causalities from per-capita real GDP to domestic investment (in proportion to GDP), from government expenditure (in proportion to GDP) to inflation rate, from inflation rate to domestic investment (in proportion to GDP), and from domestic investment to foreign aid (as percentages of GDP). Short-run bidirectional causality is observed between per-capita electricity consumption and per-capita real GDP, and between per-capita real GDP and government expenditure (in proportion to GDP).


2019 ◽  
pp. 220
Author(s):  
Ni Putu Ambar Pratiwi ◽  
I Gusti Bagus Indrajaya

Abstract: The Effect of Economic Growth and Government Expenditures on Absorption ofLabor and Public Welfare in the Province of Bali. This study aims to determine the conditionof employment in the Province of Bali, analyzing the effect of economic growth and governmentexpenditure on employment and community welfare. This data is obtained from the Central StatisticsAgency of Bali province. The analysis technique used is Path Analysis. The results showed that economic growth had a positive and insignificant influence on the absorption of employment in the province of Bali and government expenditure had a positive and significant effect on employmentin the Province of Bali. Government expenditure and employment have a positive and significantinfluence on the welfare of the people in Bali Province while economic growth has a non-significanteffect on people’s welfare. Labor absorption mediate economic growth towards the welfare of thepeople in Bali Province while the absorption of labor does not mediate government spending onthe welfare of the people in Bali Province in 2013-2017.


2020 ◽  
pp. 22
Author(s):  
Adhitya Wardhana ◽  
Bayu Kharisma ◽  
Sarah Annisa Noven

This study aims to see the effect of population dynamics variables on economic growth in Indonesia. This study uses the Ordinary Least Square model with time series data from 1986 to 2016. The data used are population dynamics variables, such as number of fertilities, infant mortality, with the variable control are the amount of labor, savings and government expenditure on economic growth measured through Gross Domestic Product. The results os the study showed that the fertility amount in Indonesia has a negative effect on the amount of economic growth in Indonesia, which means that increasing population will reduce economic growth in Indonesia. then, variable infant mortality has a negative influence on economic growth in Indonesia. Fertility variables and the population of productive age have a positive effect on labor force participation rates. Control variables, like savings and government expenditure, also have a positive effect on economic growth in Indonesia.


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