The Relation between Government Expenditures and Economic Growth in Thailand

This paper has examined the relationships between insurance and economic growth across the European Union countries which belong to the European Insurance Federation. Using annual data over the period of 2004-2015, the authors have done this by applying descriptive statistics analysis and econometric methods as well. This research has contributed to understanding the importance of the insurance-growth nexus and combined different approaches prevailing in the recent scientific literature. The research has led to the following broad conclusions: (1) descriptive statistics analysis has shown that the insurance sector development is higher in economically rich countries, such as the UK,

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“…The Granger test has estimated two regression equations as follows (Gokmenoglu et al, 2015;Jiranyakul 2007;Stern 2011):…”

Section: Methodsmentioning

confidence: 99%

The relationship between insurance and economic growth: evidence from the European Union countries

Peleckienė

Peleckis

Dudzevičiūtė

2019

Economic Research-Ekonomska Istraživanja

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“…In 4 countries, no relation was found. Jiranyakul and Brahmasrene (2007) used Thailand data to test Granger causality in examining the relationship between government expenditure and economic growth. The results support the Keynesian hypothesis.…”

Section: Literature Reviewmentioning

confidence: 99%

Real Government Expenditure and Economic Growth in the Southern Caucasus Countries: A Panel Data Analysis

Gümüş

Mammadov

2019

KJHSS

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The primary purpose of this paper is to find out the relationship between real government expenditures and real gross domestic product (GDP) for three countries of the South Caucasus namely, Azerbaijan, Armenia, and Georgia. The relationship between the variables is essential for policy formation for these countries due to their transition to market economy. There are two main hypotheses related to real government expenditures and growth. The Wagner’s hypothesis argues that the growth of an economy leads to more government spending while Keynes’s hypothesis proposes that government expenditures feed higher economic growth. From policy perspectives, the Keynesian view gives a dominant role in government intervention for higher growth while Wagner view gives just a passive role to the government in economic policy. This paper is designed to investigate these hypotheses by using econometric panel techniques. The analysis covers the years 1990-2016. According to our empirical results, there is a mutually positive relationship between real government expenditures and economic growth in the South Caucasus. At the same time, we also find short and long-term bidirectional causality. These results confirm each other and in line with the existing literature. Our study contributes to the literature as filling the gap by studying the South Caucasus countries.

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“…When considering the appropriate policy measures that stimulate growth, policymakers are usually interested in. The management of the supply of money and expenditures of the government as well as supply-side policies are the focus of demand management policies of the government thus the determination of the amalgam between these policies to propel growth in the economy is the interest of policymakers [11]. However, the poor level of growth and development attained in the economy over the years compared to its continuous increase in public expenditure raises concern to the role of government expenditure in accelerating economic growth and development [12].…”

Section: Relationship Between Government Expenditure and Economic Growthmentioning

confidence: 99%

Government Expenditure and Economic Growth: Evidence from the Nigeria Economy (1981 – 2016)

Jeff-Anyeneh

Ibenta

2019

AIR

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The effect of government expenditure on economic growth in Nigeria for a period of thirty-six (36) years that is, from 1981 to 2016 was the focus of this study. This study was inspired by two leading controversial issues in theoretical literature and empirical studies regarding the effect of government expenditure on economic growth for emerging economies. First, within the theoretical claim, Keynesian school of thoughts assert the presence of positive linkage between government expenditure and economic growth and development, while neoclassical economists refute this assertion and posited a negative association between government expenditure and economic growth and development. Identifying the side of these two arguments that is akin to all economies remains a puzzle among scholars as validation of either theory across the globe is still in vain. Secondly, the direction of relationship/causality between government expenditure and economic growth and development over the years is still not clear, especially for developing countries. Specifically, this study ascertained the effect of government recurrent and capital expenditure on the growth rate of real gross domestic product. We applied the Autoregressive Distributive Lag (ARDL) Co-integration and Granger causality test using secondary data from the Central Bank of Nigeria. We found that Nigeria’s economic growth is independent/not affected by government recurrent and capital expenditure. We are of the opinion that the Federal Government through its appointed ministers in collaboration with the legislature review the composition of Federal Government of Nigeria total expenditure by ensuring that capital expenditure takes at least 50% of annual total expenditure. Measures such as reducing foreign training and bogus allowances for political office holders should be tailored towards reducing government consumption expenditures.

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The Relation between Government Expenditures and Economic Growth in Thailand

Cited by 26 publications

References 19 publications

The relationship between insurance and economic growth: evidence from the European Union countries

The relationship between insurance and economic growth: evidence from the European Union countries

Real Government Expenditure and Economic Growth in the Southern Caucasus Countries: A Panel Data Analysis

Government Expenditure and Economic Growth: Evidence from the Nigeria Economy (1981 – 2016)

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