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 What can SVAR models tell us about the impact of Public Expenditure Shocks on macroeconomic variables in algeria? A Slight Hint to the COVID-19 Pandemic

2021 ◽  
Vol 21 (2) ◽  
pp. 21-37
Author(s):  
Chellai Fatih
Keyword(s):  
Economic Growth ◽  
Public Expenditure ◽  
Oil And Gas ◽  
Supply And Demand ◽  
Public Spending ◽  
Economic Activities ◽  
Macroeconomic Variables ◽  
Energy Factors ◽  
New Feature ◽  
The Impact

Abstract Research background: Public spending is a generator of economic growth as well as its components; this reality is more depicted in the era of the COVID-19 world pandemic where a recession in economic activities has touched all countries. Purpose: In this paper, we tried to study the impact of shocks in public expenditure on some macroeconomic variables in Algeria during the period (1970–2019). Research methodology: The VAR Structural models were used to study the response of these variables to shocks in public spending in Algeria. Results: The results of the modeling indicate a direct response of both exports and imports to a shock in the levels of public expenditure, but this response is relatively weak to the variable value of exports (especially in the short term), which is mainly due to the structure of the Algerian economy that is mainly dependent on the export of oil and gas, which in turn is mainly affected by international energy factors e.g. prices, supply, and demand. For the rate of inflation, there was an inverse response to shocks in the level of public spending. In the context of the global health and economic crisis, we will witness a further faltering of economic growth in Algeria. Novelty: Our contribution is a new feature of the application of the SVAR model in the era of the COVID-19 pandemic that focused on analyzing the impacts of public expenditure on exports and imports

scholarly journals THE NEXUS BETWEEN PUBLIC SPENDING ON EDUCATION AND ECONOMIC GROWTH OF KOSOVO – ECONOMETRIC APPROACH

2020 ◽  
Author(s):  
Besime Ziberi ◽  
Mimoza Hodaj
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Secondary Education ◽  
Public Expenditure ◽  
Positive Impact ◽  
Pearson Correlation ◽  
Public Spending ◽  
Secondary Data ◽  
State Budget ◽  
The Impact

The main aim of this study is to analyze the trend of public spending dedicated to education in case of Kosovo over the years and to measure the impact of public spending in education on economic growth of Kosovo. In order to achieve the goal, the Pearson Correlation is used and a multifactorial regression model (OLS) has been modified and adapted, where we have determined the Gross Domestic Product (GDP) as depended variable and as independent variable in the model conclude: (i) Total public expenditure on education (ii) Public expenditure on Secondary Education and (iii) Public expenditure on Higher Education (University). The data used is secondary data from the Kosovo’s State Budget, Ministry of Finance and Transfers, and Kosovo Agency of Statistics. We come in conclusion that public spending dedicated to the Higher Education (University) has a positive impact on Kosovo's economic growth meanwhile the public spending on secondary education and total public expenditure on education in the model circumstances show no significance. The paper comes with further recommendations on public spending policies dedicated to education in order to influence Kosovo's economic growth.

scholarly journals The Nexus Between Public Spending on Education and Economic Growth of Kosovo (Econometric Approach)

2020 ◽  
Vol 34 (1) ◽  
pp. 285-296
Author(s):  
Besime Ziberi ◽  
Rrezarta Gashi ◽  
Mimoza Hodaj
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Secondary Education ◽  
Public Expenditure ◽  
Positive Impact ◽  
Pearson Correlation ◽  
Public Spending ◽  
Secondary Data ◽  
State Budget ◽  
The Impact

Abstract The main aim of this study is to analyse the trend of public spending dedicated to education in case of Kosovo over the years and to measure the impact of public spending in education on economic growth of Kosovo. In order to achieve the aim, the Pearson Correlation has been used and a multifactorial regression model (OLS) has been modified and adapted, where we have determined the Gross Domestic Product (GDP) as a dependent variable and as an independent variable in the model: (i) Public expenditure on secondary education and (ii) Public expenditure on higher education (university). The data used are secondary data from the Kosovo’s State Budget, Ministry of Finance and Transfers, and Kosovo Agency of Statistics. We have come to a conclusion that public spending dedicated to higher education (university) has a positive impact on Kosovo’s economic growth meanwhile public spending on secondary education does not show any effect. The paper suggests further recommendations on public spending policies dedicated to education in order to influence Kosovo’s economic growth.

scholarly journals Budgetary efficiency expressed as the interdependence of public expenditures and the Gross Domestic Product in the Republic of Moldova

2020 ◽  
Vol 2 (1) ◽  
pp. 245-253
Author(s):  
Ion Pârţachi ◽  
Simion Mija
Keyword(s):  
Economic Growth ◽  
Quantitative Analysis ◽  
Gross Domestic Product ◽  
Performance Indicators ◽  
Public Expenditure ◽  
Econometric Model ◽  
Public Expenditures ◽  
Republic Of Moldova ◽  
Efficiency And Effectiveness ◽  
The Republic

Abstract We address budget performance in terms of savings, efficiency, and effectiveness. To facilitate a quantitative analysis of budgetary efficiency, we perform a detailed study based on an econometric model of the interdependence of public expenditure, both capital and private, and GDP. We show that an increase in public expenditure, especially current, can significantly accelerate the growth of the productive sectors of the economy. Further, the implementation of performance indicators for public expenditure can lead to accelerated economic growth, both quantitatively as well as qualitatively, in the Republic of Moldova.

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.

scholarly journals Public Spending, Quality of Bureaucracy and Economic Growth: A Theoretical Analysis

2019 ◽  
Vol 58 (2) ◽  
pp. 203-221
Author(s):  
Shaheen Naseer
Keyword(s):  
Economic Growth ◽  
Public Spending ◽  
Rent Seeking ◽  
Jel Classification ◽  
Public Expenditures ◽  
Potential Output ◽  
Output Loss ◽  
The Impact ◽  
The Relationship

This paper develops a theoretical framework to investigate the relationship between public spending and economic growth, where public spending provides both productive capital and unproductive services. We take into account the quality of bureaucracy with the possibility of rent-seeking motives. A key feature of the model is that it distinguishes between utility enhancing and productivity enhancing public spending. In the absence of rent-seeking motives, the paper demonstrates that public spending will promote economic growth only if marginal productivity of spending is high enough to offset the potential output loss due to increased taxation. In the presence of rent-seeking, however, the impact of public spending on economic growth depends on the quality of bureaucracy and how the latter impinges upon the rentseeking behaviour. The analysis shows that while improvement in bureaucratic quality would unambiguously raise the share of utility enhancing public spending, its impact on economic growth would depend on how bureaucratic quality influences the relative magnitudes of the two types of public spending as well as on how far bureaucratic extraction will be controlled as a result of improvement in bureaucratic quality. Bureaucratic extraction is likely to be minimised with strong institutions and effective monitoring and accountability mechanisms thereby improving the prospects of economic growth. JEL Classification: C61, D23, D61, D73, H50 Keywords: Rent-seeking, Quality of Bureaucracy, Public Goods, Public Expenditures

scholarly journals The Impact of Government Spending On Economic Growth in Kazakhstan and Kyrgyzstan

2017 ◽  
Author(s):  
Serhat Atmaca ◽  
Metin Bayrak
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Public Investment ◽  
Public Spending ◽  
Public Expenditures ◽  
Economic Policies ◽  
Positive Effects ◽  
Average Group ◽  
The Government ◽  
The Impact

The realization of economic growth in order to grow and develop an economy and increase social welfare is one of the basic aims of every society. For this reason, states are making great efforts to realize economic growth and make it sustainable. In this context, the impact of public expenditure on the economic growth of countries is a matter of research. Government spending can be classified economically as expenditure on capital and current expenditures, functionally as general public services, defense services, education services, public order and security services, economic affairs and services, environmental protection services, health services and other services. There are also investment expenditures made by the government for economic development. In particular, public investment expenditures complementary to private investments have positive effects on growth. The Kazakhstan and Kyrgyzstan economies, which are in the category of developing countries, are looking for ways to achieve development and growth and are implementing various practices and economic policies in this process. In this context, Kazakhstan and Kyrgyzstan have the main purpose of studying and analyzing the effects of the public expenditures that they think will be effective on economic growth. The various variables of public spending in the study were examined with the Karma Average Group (PMG) model, which shows how Kazakhstan and Kyrgyzstan's growth affected their growth in the short and long term. As a result, public spending has been influenced by economic growth and it has been determined which components are active on a country basis.

scholarly journals The impact of the development of manufacturing on economic growth: the experience of Uzbekistan

2020 ◽  
Vol 2020 (4) ◽  
pp. 130-147
Author(s):  
Dilafruz Mukhsimova ◽  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Trade Openness ◽  
Processing Industry ◽  
Theoretical Approaches ◽  
Country Analysis ◽  
The Republic ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
Growth Indicators

The article is devoted to the assessment of the impact of the development of manufacturing on economic growth in developing countries, in particular, the Republic of Uzbekistan. Conclusions for Uzbekistan take into account the peculiarities of the implementation of the Program for Localization of the Production of Finished Products, Components and Materials. To perform the estimates, a regression model was constructed to determine the impact of the factors of sustainable economic growth on per capita GDP (in US dollars of 2010), which indicator is used in the model as a dependent variable characterizing sustainable development. Factors of economic growth are substantiated with the use of well-known theoretical approaches and empirical data. The article presents a cross-country analysis of economic growth indicators in developing countries, which allowed to form a sufficient sample of data for estimates. The article evaluates the impact of the diversification factor on economic growth indicators, analyzes the relationship between the indicators of processing industry development and economic growth. The connection between the volatility of economic growth and the development of the processing industry is demonstrated, as well as a comparative analysis of different types of economic diversification in the developing countries selected for this study. Using correlation and regression analysis, the impact on economic growth of such factors as R&D expenditures, human capital, trade openness, the share of manufacturing in GDP, and employment in industry was analyzed in detail. Based on the author's study of the impact of these factors on economic development, the recommendations have been developed for developing countries, including Uzbekistan.

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.

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