scholarly journals The Impact of Government Expenditures on Economic Growth in Jordan (1980-2013)

2015 ◽  
Vol 9 (1) ◽  
pp. 99 ◽  
Author(s):  
Torki M. Al-Fawwaz
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Government Expenditure ◽  
Multiple Linear Regression Model ◽  
Government Expenditures ◽  
Economic Activities ◽  
Economic Sectors ◽  
Keynesian Model ◽  
The Impact ◽  
The Empirical Analysis

<p class="FreeForm">The purpose of this study is to measure the impact of government expenditures on economic growth in Jordan during the period between 1980-2013. To achieve the goal of this study, the multiple linear regression model, linking the study variables was used. Then, the model was analyzed using the OLS model. The results indicate that there is a positive impact for both total government expenditure and current government expenditure on economic growth. This result supports the Keynesian model. Based on the findings of the empirical analysis, the study recommends that capital government expenditure should be directed mainly to current productive economic activities in order to stimulate activities in the economic sectors.</p>

scholarly journals The Analysis of the Economic Impact of VAT on the Economic Growth in Southern Europe

2019 ◽  
Vol 12 (2) ◽  
pp. 47-56
Author(s):  
Cosmina-Ștefania Chiricu
Keyword(s):  
Economic Growth ◽  
Urban Areas ◽  
Negative Impact ◽  
Positive Impact ◽  
Southern Europe ◽  
Aggregate Consumption ◽  
Agricultural Potential ◽  
The Impact ◽  
The Empirical Analysis ◽  
Econometric Assessment

AbstractThe Southern Region of Europe is economically well-developed with highly industrialized urban areas and with great agricultural potential. The empirical analysis is based on an econometric assessment that measures the impact of the VAT on the rate of economic growth for years between 1996 and 2017. The empirical evidence highlighted a significant positive impact of VAT on economic growth, but a poor and ineffective use of the tax revenues during the period under review. Moreover, evidence revealed relatively high rates of VAT in the countries analyzed, with negative impact on the aggregate consumption and a diminishing effect of the consumer’s income.

scholarly journals Remittances Impact on Economic Growth, Domestic Savings and Domestic Capital at the Presence of ODA and FDI in Selected MENA Countries

2016 ◽  
Vol 3 (2) ◽  
pp. 26 ◽  
Author(s):  
Mahmoud Mohammed Sabra
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Host Countries ◽  
Mena Countries ◽  
Domestic Capital ◽  
Domestic Savings ◽  
Seeking Behavior ◽  
The Impact

<p>This article investigates the impact of remittances on economic growth, investment and domestic savings in selected MENA labor exporting countries. The estimations have been done in the presence of other international capital inflow, which are foreign aid and foreign direct investment. A multiple equations model estimated simultaneously using different techniques. We found a positive impact of remittances on both growth and investment, meanwhile a negative impact on domestic savings. Aid impacts negatively on both growth and savings where it finance consumption instead of investment and enhance rent seeking behavior. Government expenditure and FDI are important source of growth. We recommended that policies for encouraging final use of productive investment of remittances. In addition, enhancing more project of migrant in home country that may facilitate their trade with host countries. Finally, more efficient allocation of aid is requires, and attracting more FDI.</p>

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.

scholarly journals Fiscal Deficit and its effects on economic growth

2021 ◽  
Vol 10 (1) ◽  
pp. 62-70
Author(s):  
Nexhat H. Kryeziu ◽  
Egzon Hoxha
Keyword(s):  
Economic Growth ◽  
Serial Correlation ◽  
Positive Impact ◽  
Multiple Linear Regression Model ◽  
Positive Sign ◽  
Gdp Growth ◽  
Fiscal Deficit ◽  
Least Squares Regression ◽  
Growth Ratio ◽  
The Impact

The main purpose of this paper is to assess the impact of the deficit on GDP growth for the Eurozone area, using panel data for a period from 1995 to 2015, with a total of 257 observations. In order to conduct the study and come up with results, we have used a multiple linear regression model with the least-squares regression. Consequently, in order to test the data used in the model, we have applied diagnostic tests, such as the Durbin-Watson test to analyze the correlation of serial correlation, as well as the Breusch-Pagan test for heteroskedasticity. The test results prove that there is no heteroskedasticity and at the same time there are strong indications that the model has no relation between serial correlation. The results presented in our study show that the variables, deficit ratio to GDP, is statistically significant with a positive sign and as a result, we have the growth of the deficit ratio with GDP having a positive impact on the economic growth ratio. Keywords: Fiscal deficit, GDP Growth Rate, Correlation, Regression

scholarly journals Impact of FDI Inflow on Average Wage and Employment in Serbia

2019 ◽  
Author(s):  
Milica Perić
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Research Question ◽  
Multiple Linear Regression Model ◽  
Time Lags ◽  
Average Wage ◽  
Developed Economies ◽  
Economic Growth Rates ◽  
Dissemination Of Technology ◽  
The Impact

Research question: This research comes to examine the impact of FDI inflow on average wage and on employment in Serbia in the period 2005-2017. Motivation: FDI tendentiously increases the economic growth rates, taking into consideration the fact that developed economies benefit from FDI because their local institutions are more productive, while developing countries benefit from “pieces“ of FDI, i.e., dissemination of technology and rarely evoke some relevant progress in economic growth. Despite the growing research in the FDI field, the scientific literature on average wage and employment in relation to FDI Inflow in Serbia is limited, which is the motivation to conduct this research. Idea: Therefore, the aim of this research is to estimate the relationship between FDI Inflow and average wage and employment. Data: The data are obtained from the official sites of the National Bank of Serbia and from the Statistical Office of Serbia. Tools: The methodology used is the multiple Linear Regression Model, applying the IBM SPSS software, in order to identify the impact of FDI Inflow on average wage and on employment using time lags. Findings: The results prove the absence of significant impact of FDI inflow on average wage and on employment within the country. The highest positive impact of FDI inflow appears to be in the year the inflow occurs for average wage, and in the second year of FDI inflow performance for employment. Contribution: This paper contributes to the awareness of low impact of FDI inflow on average wage and on employment in Serbia. Moreover, this research covers the gap in the literature in the field of FDI inflow in relation to average wage and employment within the country

THE ROLE OF INSTITUTIONAL QUALITY IN THE RELATIONSHIP BETWEEN FDI AND ECONOMIC GROWTH IN VIETNAM: EMPIRICAL EVIDENCE FROM PROVINCIAL DATA

2019 ◽  
Vol 64 (03) ◽  
pp. 601-623 ◽  
Author(s):  
NGUYEN VAN BON
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Estimation Method ◽  
Institutional Quality ◽  
Economic Activities ◽  
Fdi Inflows ◽  
Important Message ◽  
The Impact ◽  
The Relationship

All investigations into the role of institutions in the relationship between foreign direct investment (FDI) and economic growth conclude the impact of interaction between FDI and institutional quality on economic growth is significantly positive. Contrary to the conclusion of these studies, this paper finds it is significantly negative for a panel data of 43 provinces in Vietnam over the period 2005–2012 via the estimation method of difference panel GMM Arellano–Bond. In addition, the estimated results also show: (1) FDI inflows significantly foster economic growth; (2) Good institutional quality has a significantly positive impact while bad institutional quality has a negative albeit insignificant effect on economic growth. From the policy perspective, these findings signal an important message to developing countries that governments should carefully adjust policies and institutions because aside from attracting more FDI inflows and promoting the economic activities, it can also be detrimental to economic growth.

scholarly journals The Impact of Government Expenditures upon Economic Growth in Post-Communist Countries

2013 ◽  
Vol 60 (1) ◽  
pp. 126-134 ◽  
Author(s):  
Marius Sorin Dincă ◽  
Gheorghița Dincă
Keyword(s):  
Economic Growth ◽  
Government Expenditure ◽  
Government Expenditures ◽  
National Defense ◽  
East European ◽  
Real Gdp Per Capita ◽  
The Government ◽  
Communist Countries ◽  
The Impact ◽  
The Relationship

Abstract This paper examines the relationship between the structure and share of government expenditure into Gross Domestic Product (GDP) and the real GDP per capita. Our study uses a micro panel data for a sample made of ten countries from Central and East European, for the period 2002-2012. The empirical results of the linear regression show that the GDP/capita is positively correlated with public order and safety expenditures as well as with economic actions, while national defense and general public services are negatively correlated. The results obtained largely correspond with the ones reached by other researchers approaching the topic of the relationship between economic growth and composition of the government expenditures. The health and education expenses, though instrumental for the long-term development of any society, did not show any significant impact upon the evolution of the GDP/capita, probably as a result of the short-term available data.

scholarly journals The Effect of Government Expenditures, Private Investment and Labor on Economic Growth in Pidie District

2018 ◽  
Vol 1 (4) ◽  
pp. 357
Author(s):  
Munzir AG ◽  
Mohd. Nur Syechalad ◽  
Vivi Silvia
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Positive Impact ◽  
Government Expenditure ◽  
Multiple Linear Regression Model ◽  
Private Investment ◽  
Government Investment ◽  
Influence Variable ◽  
Private Government ◽  
Investment Spending

This study aims to determine the effect of government spending, private investment, and labor on economic growth in Pidie District, Data analyzed from 2000-2016, using multiple linear regression model. The results of research on government spending, private investment and labor both simultaneously and partially have a positive and significant impact on economic growth in Pidie District. Variations of government expenditure variables, private investment and labor are able to explain the variation of economic growth in Pidie District by 48,7 percent and the rest of 51,3 percent influenced by other variables. Labor is the most dominant variable of influence on economic growth in Pidie District. Private investment is the least influence variable to economic growth in Pidie District. The need for a policy that could make private government investment spending, and labor increases simultaneously so it is likely to have a positive impact on improving economic growth in Pidie District.

scholarly journals Government General Spending and Human Development: A Case Study of Nigeria

2019 ◽  
Vol 8 (1) ◽  
pp. 51-59 ◽  
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Human Development ◽  
Positive Impact ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Multiple Linear Regression Model ◽  
Negative Influence ◽  
Capital Projects ◽  
Capital Development ◽  
The Impact

Abstract The study assesses the impact of government general spending on human development in Nigeria from 2003 to 2017. The purpose is to determine the response of human development index (HDI) to recurrent and capital government expenditure. In order to achieve this objective, the multiple linear regression model linking the study variables was applied while Ordinary Lease Squares method was used to analyze the model. The results indicate that government’s capital expenditure and inflation have insignificant negative influence on HDI, corruption does not have any impact on HDI but government recurrent expenditure has strong and significant positive impact on HDI. The study concludes that resources on recurrent expenses should be reduced while more money should be invested in capital projects for human capital development in Nigeria.

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