scholarly journals Public expenditure and economic growth in a petroleum-based economy: Nigeria 1960-1992

1999 ◽  
Vol 2 (3) ◽  
pp. 374-389 ◽  
Author(s):  
Akpan H. Ekpo
Keyword(s):  
Economic Growth ◽  
Growth Process ◽  
Public Expenditure ◽  
Government Expenditure ◽  
Public Spending ◽  
Private Investment ◽  
Positive Influence ◽  
Public Expenditures ◽  
Private Sector Investment ◽  
Education And Health

The study analyses the contribution of government expenditure to the economic growth process in Nigeria over the period 1960-1992. The results indicate that public expenditures on transport, communication and agriculture crowd-in private investment, while public spending on manufacturing and construction crowd-out private investment. Also, expenditures on education and health have a positive influence on private sector investment. Government must continue to perceive the creation of an enabling environment, at the least, as its own contribution to the economic growth process.

scholarly journals The impact of public expenditures on economic growth of the Republic of North Macedonia

2020 ◽  
Vol 8 ◽  
pp. 249-258
Author(s):  
Aleksandar Nikoloski
Keyword(s):  
Economic Growth ◽  
Public Expenditure ◽  
Public Spending ◽  
Living Standards ◽  
Living Standard ◽  
Public Expenditures ◽  
Short Term ◽  
The Republic ◽  
Sustainable Economic Growth ◽  
The Impact

Ensuring high and sustainable economic growth is one of the main tasks of public spending policy. In fact, public expenditure plays an important role in the formation of physical and human capital over time. If are properly targeted, they can stimulate economic growth even in the short term, when limited infrastructure of (unskilled) workforce is a barrier to increased production. Therefore, the realized impact of public expenditures on economic growth can be considered as an indicator of their effectiveness. The goal of public expenditure is to increase economic growth by providing more employment opportunities, increasing people's income and living standards. Therefore, if they are well-managed, they can lead to the desired level of economic growth and improvement of the living standard of the population.

scholarly journals Developpemnt Du Capital Humain, Croissance Economique Et Bien-Etre En Côte d’Ivoire

2016 ◽  
Vol 12 (34) ◽  
pp. 251
Author(s):  
Seydou Koné
Keyword(s):  
Economic Growth ◽  
Cote D'ivoire ◽  
Côte D’Ivoire ◽  
Public Spending ◽  
Well Being ◽  
Public Expenditures ◽  
Cote D’Ivoire ◽  
Education And Health ◽  
Côte D'ivoire ◽  
The Impact

This paper assesses human capital development policies and their impact on economic growth and households’ well-being in Côte d'Ivoire. A dynamic computable general equilibrium model was used to measure the impact of public spending on education and health policies as predicted by the government and then the effects of a larger increase of those spending on economic growth and household welfare in Côte d'Ivoire. The simulations results show that public spending in education and health has positive impacts on education and health demands, on the improvement of labor’s factor quality and on the productive capacities of poor and vulnerable households. The results also show that there is a positive correlation between public expenditures on education and health, economic growth and welfare in Côte d'Ivoire.

Public Expenditure and Economic Growth: Evidence from the Developing Countries

2020 ◽  
Vol 9 (3) ◽  
pp. 228-236
Author(s):  
Deepti Ahuja ◽  
Deepak Pandit
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Public Expenditure ◽  
Trade Openness ◽  
Government Expenditure ◽  
Public Spending ◽  
Set Covering ◽  
Control Variables ◽  
Data Set ◽  
The Relationship

Regardless of theoretical grounds that presumed a positive relationship between government spending and economic growth, the extant research on this nexus is inclusive. This article re-examines the relationship between public expenditure and economic growth using more copious panel data set covering 59 countries in 1990–2019. Our empirical results confirm the unidirectional causality between economic growth and government expenditure where the causation runs between public spending and GDP growth. The results at large support the Keynesian framework that asserts the importance of government expenditure in stimulating economic growth. Further, the analysis reveals that after considering all the control variables such as trade accessibility, investment and inflation public spending positively affects economic growth. With regards to control variables, it was found that investment has a significant and positive bearing on economic growth. Evidence from the regression estimates further displays that trade openness encourages evolution in developing countries. However, population growth and unemployment have a detrimental effect on economic growth.

scholarly journals Economic Growth of Asia Pacific Countries

2018 ◽  
Vol 2 (1) ◽  
pp. 52-60
Author(s):  
Nabaz T. Khayyat ◽  
Sherwan Kafoor
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Trade Openness ◽  
Government Expenditure ◽  
Asia Pacific ◽  
Tax Rate ◽  
Education And Health ◽  
Fixed Capital Formation ◽  
Main Driver ◽  
The Impact

This empirical study examines the determinant of economic growth among Asia Pacific countries. While many other studies focused on specific economies with particular determinants identified from previous studies, this study expands the boundaries of countries to examine different factors that are expected to affect the economic growth in Asia Pacific countries. Estimation results of this study are based on the analysis of a panel data for the period 1994–2011. The impact of total population, industry share of GNI, interest rate, gross fixed capital formation, and tax rate are statistically examined to be strongly significant for the whole sample. In the case of government expenditure and trade openness, they are examined to be significant to some degree. Finally, though human capital is expected to be the main driver of economic growth, the result from correlation analysis revealed that there is a high correlation between expenditure on education and health. To show the impact of human capital on economic growth in Asia Pacific countries, estimation with years of schooling may enhance the study instead of using expenditure on education and health.

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 Revisiting the Relationship between Economic Growth and Government Size

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
Atrayee Ghosh Roy
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Government Expenditure ◽  
Private Investment ◽  
The United States ◽  
Simultaneous Equation ◽  
Series Data ◽  
Government Size ◽  
Government Investment ◽  
Government Consumption

The purpose of this paper is to explore the association between government size and economic growth in the United States using time-series data over the period 1950–2007. In particular, this paper examines the effects of two key components of government expenditure, namely, government consumption and government investment, on US economic growth. A simultaneous-equation model is used to deal with the problem of bi-directional relationship between government size and economic growth. The results suggest that an increase in government consumption slows economic growth, while a rise in government investment enhances economic growth. Furthermore, the results also show that government investment crowds out private investment. Therefore, the overall effect of total government expenditure on economic growth is ambiguous.

The Growth of Government Expenditure

1984 ◽  
Vol 108 ◽  
pp. 34-41 ◽  
Author(s):  
M. S. Levitt
Keyword(s):  
United Kingdom ◽  
Government Spending ◽  
Public Expenditure ◽  
Government Expenditure ◽  
Public Spending ◽  
Green Paper ◽  
Preliminary Results ◽  
The Past ◽  
The United Kingdom ◽  
Future Policy

There is much debate at present about trends in public expenditure. The recent Green Paper on the longer-term outlook for public spending describes how public expenditure has risen faster than GDP in the past and raises the question whether total public spending need grow at all, in real terms, in future although the growth of GDP is projected at over 2 per cent a year. This article is not intended to offer any normative comment on future policy for government spending. Its purpose is to describe some preliminary results of a study of the growth of government spending and its relationship to GDP in the United Kingdom; it also makes some comparisons, in rather broad terms, of the experience of this country with that of some other countries.

scholarly journals Russian budget structure efficiency: Empirical study

2018 ◽  
Vol 4 (3) ◽  
pp. 197-214 ◽  
Author(s):  
Alexey Kudrin ◽  
Alexander Knobel
Keyword(s):  
Economic Growth ◽  
Positive Influence ◽  
Public Expenditures ◽  
National Defense ◽  
Fiscal Multipliers ◽  
Svar Model ◽  
Economic Growth Rates ◽  
Empirical Methodology ◽  
Enforcement Activity

This paper investigates the economic efficiency of Russian public expenditures in 2002–2016 by estimation of their multiplicative impact on the GDP level and economic growth. We use the empirical methodology based on Corsetti et al. (2012). We estimate a number of fiscal multipliers: on national security, law-enforcement activity, national defense, education, health care and sport and road infrastructure. For assessing the influence of budget structure on long-term economic growth rates, we estimate the SVAR model in which GDP growth is a structural variable. The research shows a positive influence of budgetary resources redistribution from non-productive government expenditures to productive ones on economic development.

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 Corruption and Growth: Evidence from the Italian regions

2012 ◽  
Vol 1 (2) ◽  
pp. 126 ◽  
Author(s):  
Nadia Fiorino ◽  
Emma Galli ◽  
Ilaria Petrarca
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Expenditures ◽  
Potential Bias ◽  
Income Differentials ◽  
Italian Regions ◽  
Dynamic Growth ◽  
The Impact

This paper investigates the impact of corruption on economic growth in the Italian Regions. We estimate a dynamic growth model for the period 1980-2004 addressing both the potential bias of the measures of corruption and the endogeneity between corruption and economic development. We find strong evidence of a negative correlation between corruption and growth. Moreover, since government intervention has been traditionally used to reduce income differentials between the Northern and the Southern regions, we also analyze the interaction between corruption and government expenditure. Our results indicate that corruption undermines the positive impact that public expenditures have on economic growth.

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