Investment Expenditure Nexus Economic Growth in Ethiopia: Cointegration Approach

This study verifies the validation of Wagner’s theory and Keynes's hypothesis between three main government expenditure components (Health expenditure, education expenditure, and capital investment expenditure) and economic growth in Nigeria and Angola. The study employs Johansen cointegration and pairwise granger causality as the estimation techniques. Findings revealed no evidence of long-run relationships with government expenditure components of health, education, and capital investment and economic growth. The study equally reveals the validation of Wagner’s theory between growth and expenditure on health in both Nigeria and Angola. Evidence that confirms both Wagner’s theory and Keynes's hypothesis between growth and expenditure on education in Angola and validation of only Keynes hypothesis in Nigeria was found. Also, the study confirms the validation of Keynes's hypothesis between government expenditure on capital investment in both Nigeria and Angola

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Dampak Covid-19 Terhadap Perekonomian Indonesia Dari Sisi Pendapatan Nasional Pendekatan Pengeluaran

Kajian Ekonomi dan Bisnis ◽

10.51277/keb.v15i2.73 ◽

2020 ◽

Vol 15 (2) ◽

Author(s):

Ilham Tri Murdo ◽

Junaidi Affan

Keyword(s):

Economic Growth ◽

National Income ◽

Consumption Expenditure ◽

Government Consumption ◽

Investment Expenditure ◽

Goods And Services ◽

Fixed Capital Formation ◽

Long Time ◽

The Government ◽

The Impact

This study aims to determine the extent of the impact of Covid-19 on the Indonesian economy in terms of national income, which is calculated based on the expenditure method with components of household consumption, gross investment, expenditure and net exports, and future predictions, if the Covid-19 pandemic will continue in the future. long time. From the expenditure side, economic growth in quarter II-2020 compared to quarter II-2019 (y-on-y) contracted in all components. The deepest contraction occurred in the Export of Goods and Services Component of 11.66 percent, followed by the Gross Fixed Capital Formation Component with a contraction of 8.61 percent. The growth in the component of the LNPRT Consumption Expenditure contracted by 7.76 percent, and the growth in the Government Consumption Expenditure component contracted by 6.90 percent. When compared with the previous quarter (q-to-q), economic growth from the expenditure side contracted in all components except for the Government Consumption Component, which grew by 22.32 percent. This is due to an increase in spending on social assistance, especially for the response to the Covid-19 pandemic. The component that experienced the deepest contraction occurred in exports of goods and services amounting to 12.81 percent. Meanwhile, imports of goods and services as a subtracting component decreased by 14.16 percent.

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Effect of Tax and Debt Financed Government Expenditure on Economic Growth in Kenya

Journal of Economics Management and Trade ◽

10.9734/jemt/2020/v26i130215 ◽

2020 ◽

pp. 1-13

Author(s):

Gideon Mukui ◽

Joseph Onjala ◽

Japheth Awiti

Keyword(s):

Economic Growth ◽

Time Series Data ◽

Public Investment ◽

Government Expenditure ◽

Series Data ◽

Tax Revenue ◽

Government Investment ◽

Investment Expenditure ◽

Public Consumption ◽

Negative Effect

This study aims at analyzing the effect of tax and debt-financed government expenditure on economic growth in Kenya using time series data from 1980-2014. Vector Error Correction Model (VECM) was used to analyze the data. The empirical findings showed that public investment expenditure financed by issuing debt has positive effect on economic growth. The results also indicated that financing government consumption expenditure using debt has negative effect on economic growth. With regards to tax revenue, the results indicated that tax financed public consumption spending affects economic growth negatively. Moreover, the results showed financing government investment expenditure using tax revenue promotes economic growth. Based on the findings, this study therefore recommends fiscal authorities in to use borrowing to finance investment expenditure as opposed financing consumption spending. Additionally, given the adverse effects of debt-accumulation on growth performance, policy makers should focus more on domestic revenue mobilization to finance government expenditures.

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Investigating the Effects of Migrant Remittances on the Economic Growth of Cameroon

International Journal of Economics and Finance ◽

10.5539/ijef.v9n2p58 ◽

2017 ◽

Vol 9 (2) ◽

pp. 58 ◽

Cited By ~ 2

Author(s):

Moses A. Ofeh ◽

Ali T. Muandzevara

Keyword(s):

Economic Growth ◽

Growth Rates ◽

Least Squares Method ◽

Government Expenditure ◽

Consumption Expenditure ◽

Policy Measure ◽

Investment Expenditure ◽

Independent Variables ◽

Migrant Remittances ◽

Economic Growth Rates

Low and unsteady economic growth rates and strategies for fostering growth are major issues of concern for Cameroon. The paper attempted to investigate the effects of remittances on the economic growth of Cameroon. To achieve the objective for a clearer understanding of the dynamics of migrant remittances in relation to economic growth in Cameroon, the least squares method of multiples regression was exploited to analysze data collected from 1980 to 2013. The results revealed that migrant remittances to the tune of 1.5% positively but insignificantly explained economic growth in Cameroon.Further, consumption expenditure; government expenditure and exports were found to positively but significantly explain growth while investment expenditure was found to positively but insignificantly determine growth. Only imports alone stood to negatively and significantly influence economic growth in Cameroon.The value of R-squared Adjusted showed that 85% of variation in GDP was explained by variations in the independent variables specified in the model. Therefore, any policy measure aimed at improving upon the level of economic growth in Cameroon must give consideration to migrant remittances.

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