The Relationship between Government Expenditures and Revenues in Algeria During the Period (1990-2019): Granger Causality Approach

Sahed, Abdelkader; Mékidiche, Mohammed; Kahoui, Hacen

doi:10.24018/ejbmr.2020.5.5.583

Cited by 4 publications

(3 citation statements)

References 13 publications

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“…Firstly, the earn-and-spend hypothesis (or tax-spend, or revenue dominance hypothesis) proposed by Buchanan and Wagner (1977) and Friedman (1978) argue the existence of a unidirectional causality flow from government revenue to government expenditure. Similar studies have also confirmed this hypothesis , Yinusa and Adedokun (2017) in Nigeria; Rezaei (2015) in Iran; Sahed et al (2020) in Algeria). Secondly, the spend-and-earn hypothesis (or spend-tax or expenditure dominance hypothesis) led by Wiseman (1961, 1979) states that there is a unidirectional causality from government expenditures to revenue.…”

Section: Introductionsupporting

confidence: 71%

Public Revenue-Expenditure Nexus: A Test of Fiscal Synchronization Hypothesis in Nigeria

Babarinde¹,

Adewusı²,

Abdulmajeed³

et al. 2021

TR1010

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Fiscal synchronization hypothesis which argues a bi-directional causality between public revenue and expenditure, is one of the four basic schools of thought on the nexus between public revenue and expenditure. The hypothesis is one of the mostly advocated and recommended for adoption for most countries most especially, developing economies. Hence, the thrust of this study was to test within the Granger causality framework, the validity of the fiscal synchronization hypothesis in Nigeria's states and Federal Capital Territory (FCT) for the period 1981 to 2020. Hence, study aims to determine if there is a long-run relationship between public revenue and expenditure and to also evaluate the applicability of fiscal synchronization hypothesis in Nigeria. Empirical findings of this study suggest the existence of a long-run relationship between government revenue and there was a two-way causal relationship between revenue and expenditure of the states and FCT in Nigeria in the period of study. Therefore, this study confirms the validity of fiscal synchronization hypothesis in Nigeria's states and federal capital territory. It therefore recommended that the state government and the FCT to always make their revenue and expenditure decisions simultaneously in order to contract the fiscal deficit gap in the country.

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Section: Introductionsupporting

confidence: 71%

Public Revenue-Expenditure Nexus: A Test of Fiscal Synchronization Hypothesis in Nigeria

Babarinde¹,

Adewusı²,

Abdulmajeed³

et al. 2021

TR1010

View full text Add to dashboard Cite

show abstract

“…Al-Zeaud (2015), Elyasi dan Rahimi (2012), Mehrara, Pahlavani, and Elyasi (2011) menunjukkan bahwa terdapat hubungan kausalitas dua arah antara penerimaan dan pengeluaran pemerintah. Akan tetapi bertetangan degan hasil penelitian Sahed, Mékidiche, and Kahoui (2020), Mehrara and Rezaei (2014), dan Eita and Mbazima (2008) yang menyatakan bahwa hanya terdapat hubungan kausal searah antara penerimaan dan pengeluaran pemerintah yang bejalan dari penerimaan menuju pengeluaran pemerintah. Sedangkan menurut penelitian Ali and Syah (2012), dan Anne Sere and Choga (2017) menunjukkan bahwa tidak terdapat hubungan kausalitas jangka panjang ataupun pendek antara penerimaan pemerintah dan pengeluaran pemerintah.…”

Section: Sumber: Badan Pusat Statistik 2019unclassified

Kausalitas Penerimaan, Pengeluaran Dan PDRB Provinsi Di Indonesia 2010 – 2019

Putra¹,

Anis²

2021

JKEP

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This study has three main objectives, namely, first to find out how the causal relationship between local government revenue and local government expenditure in provinces in Indonesia, the second objective is to find out how the causal relationship between local government expenditure and GRDP in provinces in Indonesia. Meanwhile, the third objective is to determine the causal relationship between local government revenue and GRDP in provinces in Indonesia. In this study, the objects in this study are 33 provinces throughout Indonesia. The data used are from 2010 to 2019. The data used are secondary data obtained from the Central Statistics Agency (BPS). The analytical method used is the VAR (Vector Auto Regression) time series analysis and the cluasaility granger test. which is processed using the help of Eviews. Based on the results of hypothesis testing, it shows that: (1) There is no causal relationship between local government revenue and local government expenditure in 33 provinces in Indonesia, but what is formed is a one-way relationship between government revenue and local government expenditure in 33 Indonesian provinces. In the hypothesis testing stage (2) there is no causal relationship between local government spending and GRDP in 33 provinces in Indonesia, in the analysis stage there is no one-way or two-way relationship between government spending and GRDP. Thus the hypothesis is rejected, while the results of hypothesis testing (3) There is no causal relationship between local government revenue and GRDP in 33 provinces in Indonesia. In the analysis stage, there is no one-way or two-way relationship between each variable. Thus the third hypothesis is rejected.

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“…Although the national specificity of the state's responsibility and involvement is a significant factor in defining fiscal policy, the causality between revenue and expenditure has highlighted mixed results. On the one hand, empirical research shows that, in the long term, in less developed countries, government expenditure cause the revenue (Lojanica, 2015), but also that government revenue can cause the expenditure (Sahed, Mékidiche, & Kahoui, 2020).…”

Section: Introductionmentioning

confidence: 99%

An analysis of the government revenue–expenditure nexus: A wavelet approach for the Romanian case

Surugiu

Vasile²,

Mazilescu³

et al. 2023

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The turbulent economic environment of the last decades, the social effects associated with the responsibilities of the state to support the development of the green economy, and the increase of involvement in sustainable social inclusion make it necessary to increase budget revenues. Evaluating the link between government revenues and expenditures is a complex approach defined by several factors related to tax compliance and the perception of the efficiency of the expenditure. In addition, recent endogenous and exogenous shocks have considerably influenced the fundamentals of long-term fiscal policy and budget balancing. The type of relationship between government revenue and expenditure is analyzed to identify the leading and lagging variables, and the wavelet approach and monthly data for Romania for 2000–2021 are used. In various periods, the revenue led the expenditure, or vice versa. The spend–tax and tax–spend hypotheses are confirmed for different periods. The analysis highlights the intervals of behavioral asymmetry, which helps to monitor the implementation of fiscal policy. Also, the results could represent a starting point for outlining measures in the fiscal policy area.

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The Relationship between Government Expenditures and Revenues in Algeria During the Period (1990-2019): Granger Causality Approach

Cited by 4 publications

References 13 publications

Public Revenue-Expenditure Nexus: A Test of Fiscal Synchronization Hypothesis in Nigeria

Public Revenue-Expenditure Nexus: A Test of Fiscal Synchronization Hypothesis in Nigeria

Kausalitas Penerimaan, Pengeluaran Dan PDRB Provinsi Di Indonesia 2010 – 2019

An analysis of the government revenue–expenditure nexus: A wavelet approach for the Romanian case

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