The Impact of Government Spending on GDP in a Remitting Country

Al-Abri, Almukhtar; Genç, İsmail H.; Naufal, George

doi:10.2139/ssrn.3217494

Cited by 5 publications

(7 citation statements)

References 23 publications

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“…The relationship between remittance inflows and economic growth has been widely investigated by several researchers (Barajas et al, 2009;Chami et al, 2003Chami et al, , 2005Goschin, 2014;Konan & N'Zué, 2019;Kumar & Stauvermann, 2014;Lim & Simmons, 2015;Matuzeviciute & Butkus, 2016;Meyer & Shera, 2017). However, there are only few papers dedicated to the link between remittance outflows and macroeconomic factors (Al-Abri et al, 2018;Al Kaabi, 2016;Alkhathlan Khalid, 2013;Baas & Melzer, 2012;Bobeva, 2017;Edrees, 2016;Hathroubi & Aloui, 2016;Naufal & Genc, 2017;Razali et al, 2016;Termos et al, 2013;Vargas-Silva & Huang, 2006). These studies which are recent to some extent, do not all agree on the relationship between remittance outflows and economic growth.…”

Section: Brief Review Of Selected Literaturementioning

confidence: 99%

“…Thus, the development impact of remittance inflows to the recipient countries has drawn more attention of policymakers. Most of the academic publications on remittance outflows focused on the Gulf Cooperation Council 1 (GCC) (Al-Abri et al, 2018;Al Kaabi, 2016;Alkhathlan Khalid, 2013;Edrees, 2016;Hathroubi & Aloui, 2016;Termos et al, 2016Termos et al, , 2013, on Germany (Baas & Melzer, 2012) via a Computable General Equilibrium (CGE) model. Some recent studies have been done on the Russian Federation (Naufal & Genc, 2017) and on Malaysia (Razali et al, 2016).…”

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confidence: 99%

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Should countries' restrict remittances outflow? Evidence from Côte d'Ivoire

Konan

N’Zué²

2022

Migration and Development

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The paper investigated whether countries should restrict remittance outflows by analysing their impact on economic performance using Ivorian data ranged from 1975 to 2016. An ARDL model was used to assess both short and long-run relationships between remittance outflows and per capita GDP. The findings suggest a long-run and nonlinear relationship between these variables. Moreover, remittance outflows positively and significantly impact economic performance. We found a turning point at $ 379.485 million, beyond which each dollar remitted, will have a negative effect on economic performance. Given the current level of remittance outflows, actions towards restriction should be considered.

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Section: Brief Review Of Selected Literaturementioning

confidence: 99%

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confidence: 99%

Should countries' restrict remittances outflow? Evidence from Côte d'Ivoire

Konan

N’Zué²

2022

Migration and Development

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“…Furthermore the study evident that complete delegation of fscal responsibilities to lower governments enhance enrollment ratio in Pakistan Mukhtarov et al, 2020 [31] Azerbaijan ARDLBT, DOLS, and CCR Te estimation results show that government's expenditures on education, gross capital formation and total population have a positive and statistically signifcant impact on economic growth in the long run Dehning et al, 2016 [32] Azerbaijan ARDLBT approach Estimation results provide statistically signifcant and positive contribution of all expenditure items, supported by Keynesian theory. However, productivity of all type of expenditures has signifcantly decreased after the oil boom Al-Abri et al, 2018 [33] Saudi Arabia GCC approach Te results suggest that remittance outfows have a weak efect, if at all, on government spending, which, in turn, has an insignifcant impact on GDP been several debates concerning the connection between government spending and economic expansion. According to several empirical studies, there is a strong and positive correlation between government spending and economic growth [5][6][7][8][9], while many empirical investigations indicate a strong negative link [10][11][12][13].…”

Section: Introductionmentioning

confidence: 99%

Effect of Public Expenditure on Economic Growth in the Case of Ethiopia

Emeru

2023

The Scientific World Journal

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This study’s primary goal was to explain how Ethiopia’s economic growth affected government spending. The time series data utilized in the study were gathered between 1980 and 2018. The time series data were subjected to the Johansen cointegration test and the vector error correction model (VECM) in order to evaluate the short- and long-term correlations between public spending and economic growth in Ethiopia. According to the study, both long- and short-term economic growths are positively and significantly impacted by government spending on education. Long-term economic growth is negatively impacted by government expenditure on agriculture, while short-term effects are negatively impacted and considerable. In the long run, investment spending has a positive but negligible impact on economic growth; however, in the short run, it has a negative but large effect. Defense spending by the government has a positive and negligible effect on economic growth over the short and long terms. Both in the short and long terms, spending on health has a favorable and considerable impact on economic growth. According to the study, government spending on the education sector would help to foster the conditions that could result in higher labor force participation rates and, consequently, higher rates of economic growth. Aiming to establish a healthy and productive society that promotes economic progress, policy should focus on complementary measures to scale-up initiatives in the health sector.

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“…The importance of increasing GDRP imposes the local government to invest and spend money through fiscal policy in a potential sector that could boost GDRP and benefit the economic agents (Abdullah & Rusdarti, 2017;Al-Abri et al, 2018;Nurlina, 2015). However, the local government could not give a stimulus to all existing economic sectors in a region.…”

Section: Introductionmentioning

confidence: 99%

Leading Sectors among the Provinces of Java Island

Firdaus

Hidayatullah

Saksana

et al. 2022

JMBK

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This study aims to analyze the leading sector among provinces of Java Island. To accomplish economic development in a region, the local government often takes part in increasing the GDRP to achieve the people's well-being. It is essential to understand what sectors that could bring the most benefit to the economic agents. This study uses the Location Quotient (LQ) method with the sectoral current price GDRP data. The main result has shown that the provinces of Java Island have their advantage and disadvantage. Most of them excel in the agricultural sector except Jakarta Special Capital Region (SCR). Banten has a better real estate sector than the rest of Java Island, while most services sector has led by Jakarta SCR.

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The Impact of Government Spending on GDP in a Remitting Country

Cited by 5 publications

References 23 publications

Should countries' restrict remittances outflow? Evidence from Côte d'Ivoire

Should countries' restrict remittances outflow? Evidence from Côte d'Ivoire

Effect of Public Expenditure on Economic Growth in the Case of Ethiopia

Leading Sectors among the Provinces of Java Island

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