Does Government Ideology Affect the Relationship Between Government Spending and Economic Growth?

Haini, Hazwan; Loon, Pang Wei

doi:10.1111/1759-3441.12319

Cited by 7 publications

(5 citation statements)

References 26 publications

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“…Also, increasing government spending can lead to a more inefficient allocation of resources since governments tend to be less effective in spending money, while higher public spending can crowd‐down domestic credit. Our results are in line with Purewal and Haini (2022) and Haini and Loon (2021), who argued that financial development is a positive contributor to growth while government spending has a negative impact. The estimated coefficients for the stock market index ( finmar ) are significant and positive with the exception of the model with government debt (Model V).…”

Section: Resultssupporting

confidence: 92%

Financial development, economic growth and the role of fiscal policy during normal and stress times: Evidence for 26 EU countries

2023

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This article empirically explores the finance-growth relationship and the performance of the financial system measured by financial depth, accessibility, and efficiency of both financial sectors, that is, institutions and stock markets.It also examines the role of fiscal policy in conjunction with the performance of financial development during both normal and stress times. The data consists of a panel of 26 European Union countries over the period 1990-2020.The results show that during normal times, the finance-led growth relationship and the stock market are greatly important, while during stress times the relationship becomes insignificant. Interestingly, financial institutions are found to be more effective at promoting growth and there is clear evidence that a potentially dynamic positive effect of institutions to growth is absorbed by macroeconomic shocks. In addition, there is evidence for a threshold at a lower level compared to those previously identified in the literature. This latter finding can be attributed to different measures of financial institutions used and the impact of macroeconomic shocks. The inability of both financial sectors to enhance economic activity seems to exhibit persistence from the occurrence of the global financial crisis until the onset of the recent Covid-19 pandemic.

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Section: Resultssupporting

confidence: 92%

Financial development, economic growth and the role of fiscal policy during normal and stress times: Evidence for 26 EU countries

2023

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“…On the empirical front, Kabuga and Ismail (2018) and Das and Paul (2011) found that trade openness stimulates the economic growth of 12 Emerging Asian economies. Haini and Wei Loon (2022) and Haini and Loon (2021) confirm these findings for ASEAN and OECD economies where trade induces economic growth. Similarly, Malefane and Odhiambo (2018) found a positive impact of trade openness on economic growth in South Africa, but the effect turns insignificant when geography and country size are considered.…”

Section: Trade Openness and Economic Growthsupporting

confidence: 68%

What Shapes Economic Growth in BRICS? Exploring the Role of Institutional Quality and Trade Openness

Chhabra

Giri

Kumar

2023

J of App Econs and Policy

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Prior research has identified outward‐oriented policies as a far superior approach to achieving economic growth. Whilst trade openness determines economic growth in the short run, institutional quality is critical to long‐term viability. However, the direct and indirect effects of institutions have been understudied, particularly for the Brazil, Russia, India, China and South Africa. This study addresses this issue by estimating long‐run and short‐run elasticities using the system GMM and pooled mean group models and identifying its country‐specific impact using the fully modified ordinary least square model. According to the findings, trade and institutions are only short‐run complements of economic growth. In the long run, however, the lack of good governance limits the positive impact of trade openness.

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“…Volume 1, Issue 2 Winter / Spring 2024 economy (Haini & Wei Loon, 2021). The literature on FDI research is not particularly contentious since economists agree that FDI advances the receiving nation's technological development and, ultimately, its economic growth.…”

Section: International Journal Of Social Science Technology and Econo...mentioning

confidence: 99%

Dynamic Economic Growth of Gambia

Alliasuddin

2023

IJSSTEM

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The study analyzes the economic growth of Gambia through factors such as trade openness, investment, and government spending by using a dynamic linear regression model. This study uses yearly data from 1980 to 2020 with a total sample of 41 years. The results show that government expenditure and FDI are significantly and positively related to economic growth, while trade openness, on the other hand, influences economic growth negatively in the Gambia. The Gambian government should increase its expenditure on productive sectors to improve the performance of the economic growth of the Gambia. It also needs to provide import substitute industries to encourage the dependence on local goods compared to external goods.

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Does Government Ideology Affect the Relationship Between Government Spending and Economic Growth?

Cited by 7 publications

References 26 publications

Financial development, economic growth and the role of fiscal policy during normal and stress times: Evidence for 26 EU countries

Financial development, economic growth and the role of fiscal policy during normal and stress times: Evidence for 26 EU countries

What Shapes Economic Growth in BRICS? Exploring the Role of Institutional Quality and Trade Openness

Dynamic Economic Growth of Gambia

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