scholarly journals Testing the Relationship Between Government Spending and Revenue: Case of Kyrgyzstan

2016 ◽  
Author(s):  
Hakan Çetintaş ◽  
Damira Baigonushova
Keyword(s):  
Government Spending ◽  
Public Expenditure ◽  
Sustainable Growth ◽  
Government Revenue ◽  
Real Economy ◽  
Fiscal Discipline ◽  
Decomposition Approach ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Relationship

Sound fiscal policy is very important to promote price stability and sustainable growth in real economy. Thus, understanding the relationship between government spending and revenue is also essential to evaluate how to address fiscal imbalances. So, the focus of this research is to investigate the relationship between government revenue and spending in Kyrgyzstan. For this purpose, we have used an Autoregressive Distributed Lag (ARDL), also Variance Decomposition approach and found that these two data are cointegrated. Findings support “the tax- spend hypothesis” for fiscal discipline in Kyrgyzstan over the period of 1995-2014. In other words, according to the results, increase in real government revenue results in even higher public expenditure.

scholarly journals The link between urbanization and air pollution in Turkey: Evidence from dynamic Autoregressive Distributed Lag simulations

2021 ◽  
Author(s):  
Alper Aslan ◽  
BUKET ALTINOZ ◽  
BAKİ OZSOLAK
Keyword(s):  
Air Pollution ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Sustainable Growth ◽  
Similar Relationship ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Positive Shock ◽  
The Relationship

Abstract This study investigates the relationship between urbanization and air pollution in Turkey. Dynamic ARDL method was used for the period 1960–2014. According to the findings, there is a positive and statistically significant relationship between long-term urbanization and Co2. If urbanization increased by 1%, carbon emissions increased by 0.02%. There is a similar relationship between the shocks that will occur in population growth and Co2 emission in the long term. However, there is a negative and statistically insignificant relationship between the two variables. In the relationship between GDP and Co2, there is a positive relationship in the long term. GDP increase of 1% increases Co2 emissions by 0.11%. There is a similar relationship between long-term GDP shocks and Co2 emissions. According to short-term analysis results, energy consumption increases Co2 emissions by the same rate as GDP. However, the astonishing result of the study emerges here. Empirical results show that a long-term positive shock in energy consumption reduces CO2 emissions and a negative shock increases pollution. According to these results, Turkey has not reached the point of sustainable growth. For this reason, this developing country needs to make regulatory implementations and determine future policies for these impacts affecting air pollution.

Wagner’s Hypothesis: An Empirical Verification

2016 ◽  
Vol 6 (1) ◽  
pp. 1-12 ◽  
Author(s):  
Masudul Hasan Adil ◽  
Aadil Ahmad Ganaie ◽  
B. Kamaiah
Keyword(s):  
Public Expenditure ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Indian Context ◽  
Long Run ◽  
Weak Evidence ◽  
Lag Model ◽  
Bounds Test ◽  
The Relationship

This study explores the relationship between public expenditure (PE) and gross domestic product (GDP) to verify whether the Wagner’s hypothesis holds good in the Indian context. We cover the period from 1970 to 2013 and use econometric tools like Autoregressive Distributed Lag Model (ARDL) test to check the long-run and causal relationship among the variables. The results of the bounds test suggest that there exists cointegration between PE and GDP, but we found weak evidence for Wagner’s hypothesis as well.

scholarly journals On the Fiscal Policy in Malaysia: An Econometrical Analysis Between the Revenue – and Expenditure

2020 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Marco Mele ◽  
Angelo Quarto ◽  
Cristiana Abbafati
Keyword(s):  
Government Spending ◽  
Public Expenditure ◽  
Annual Data ◽  
Government Revenue ◽  
Fiscal Policies ◽  
Budget Deficits ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Tax Hypothesis ◽  
The Relationship

This study aims to assess the relationship between government spending and government revenue in Malaysia. The study of the causal relationship between revenue and public expenditure has important implications for the choices of fiscal policies in the field of public finances. So, this study uses annual data for the period between 1985 - 2016 with Zivot and Andrews (1992) methods and Granger causality tests. Our results sustain the spend-and-tax hypothesis highlights how the increase in tax pressure is the wrong method to contain budget deficits. In fact, in addition to reducing the disposable income of households, a tax policy of this type would reduce savings. Therefore, also the investment. All this would hurt Malaysia’s economic growth.

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 Examining Eurozone Crisis and Unemployment Relationship Using Var Models

2013 ◽  
Vol 60 (2) ◽  
pp. 85-92
Author(s):  
Dimitrios Dapontas
Keyword(s):  
Government Spending ◽  
Eurozone Crisis ◽  
Var Models ◽  
Monthly Data ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Negative Effect ◽  
Lag Model ◽  
The Relationship

Abstract This work examines the relationship between the Eurozone crisis and unemployment. We deploy distributed lag model using two binary (Crisis and crisis in another country) along with three (Government spending to GDP, Labor freedom, and urbanization) variables working as a long term factors applied on a six countries set (Cyprus, Greece, Ireland, Italy, Portugal and Spain respectively) spanning the period January1995-May 2012 in order to explain the unemployment change using VAR models on monthly data in contrast to longer frequency analyses. This innovative approach is determining the optimal lag length between unemployment and crises determining the time between turbulence and its effect to unemployment. The results show that optimal lag varies among two and eight months. Two variables seem to have negative effect on unemployment (Government spending to GDP, labor freedom) and one positive (urbanization).

Impact of Environmental Tax on Comparative Advantage of Food and Food Products: A Study of G20 Countries in Light of Environmentally Sensitive Goods

2021 ◽  
pp. 001946622110352
Author(s):  
Alisha Mahajan ◽  
Kakali Majumdar
Keyword(s):  
Comparative Advantage ◽  
Food Products ◽  
Environmental Taxes ◽  
Environmental Tax ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Environmentally Sensitive ◽  
The Relationship

Many countries are under constant fear that environmental policies might negatively influence the international competitiveness of polluting industries. In this study, we aim to evaluate the relationship and impact of the environmental tax on comparative advantage of trade in food and food products industry, considered to be one of the highly environmentally sensitive industries. This study also investigates, whether this relationship differs among countries covered in G20, with the help of correlation analysis. We select panel autoregressive distributed lag approach for this study as it can analyse long-run as well as short-run association even when the variables are stationary at different orders of integration. Using panel data from G20 countries over the period of 21 years that is from 1994 to 2015, it is concluded that when we allow environmental taxes to interact with the revealed comparative advantage (RCA) of G20 nations, the overall impact of the environmental tax on the RCA is negative in the long period. It is therefore suggested that countries should follow Porter hypothesis to stimulate innovations resulting from strict environmental regulations that affect the environment in least possible manner. JEL Codes: C01, C23, C33, F18, O57, Q5

scholarly journals The relationship between renewable energy and sustainable development in Indonesia

2021 ◽  
Vol 922 (1) ◽  
pp. 012034
Author(s):  
G Syamni ◽  
Wardhiah ◽  
Zulkifli ◽  
M J A Siregar ◽  
Y A Sitepu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Renewable Energy Sources ◽  
Secondary Data ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short And Long Term ◽  
The Relationship ◽  
Positive Effect

Abstract This paper is conducted to examine the relationship between the use of renewable energy and FDI in Indonesia. The data used in this study is secondary data that has been published by the World Bank and accessed in www.Data.worldbank.org. periode 2004-2019. The data analysis method used is the autoregressive distributed lag (ARDL) method. The results of the study found that the use of renewable energy in the short and long term has a positive effect on Indonesia’s economic growth. Meanwhile, the same thing is also shown from the FDI variable in the short term and long term which has a significant positive effect on economic growth and has a positive effect on economic growth. Finally, with this finding, it is concluded that both the short and long term the Indonesian government needs to make a breakthrough to explore renewable energy sources for economic growth.

scholarly journals The Effect of Higher Education on Growth: A Cointegration Analysis

2013 ◽  
Author(s):  
Murat Mustafa Kutlutürk ◽  
Hakan Kasım Akmaz ◽  
Ahmet Çetin
Keyword(s):  
Higher Education ◽  
Granger Causality ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Causality Test ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

In this study the relationship between higher education and economic growth was investigated using annual data between 1988 and 2012 for Turkey. To see short and long run effects of higher education on growth the Autoregressive Distributed Lag (ARDL) testing approach was used. In this investigation ratio of higher education graduates in employment was used as an explanatory variable. Zivot and Andrews test was implemented for the variables. The long and short run effects of higher education on growth was found significant. Granger causality test was implemented and one way Granger causality from higher education to growth was determined.

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