government expenditure

Licensed under Creative Common Page 199 The ARDL results in Table 1, shows that the coefficients of government expenditure, nominal exchange rate and public investment are positive and statistically significant at 5 percent level of significance indicating that the variables have a long-run positive effect on agricultural output performance which was consistent with theory that increase in government expenditure lead to an increase in output. The coefficients of inflation and total debt service are positive but are statistically insignificant indicating that there was structural break in the economy. The coefficient of terms of trade is negative but the values are statistically significant at 5 percent level of significance in influencing the agricultural output performance that is a 1 percent increase in terms of trade leads to a 0.117 decrease in agricultural output performance. On the other hand, coefficient of real interest rate is negative but statistically insignificant at 5 percent level of significance where a 1 percent increase in real interest rate leads to a 0.071 percent decrease in agricultural output performance. However, the constant coefficient of -0.5 explains that, when the independent variables are zero, the dependent variable will be -0.5.

economies. However, whereas Moalusi (2004) specified both bivariate and multivariate Granger causality models, this study specifies a bivariate model. This is because both government expenditure and revenue are expressed as ratios of GDP. The first step is to perform stationarity tests on our variables in order to avoid the problem of spurious regression and failure to account for appropriate dynamic specification [Mahendra, 2006]. This involves the use of time series techniques to determine the presence of unit roots. Time series analysis is used because it concerns the analysis of data collected overtime such as monthly, quarterly or yearly values. The purpose of such analysis is meant to discern whether there is some pattern in the values collected with the intention of forecasting economic trends. This permits the adjustment of economic time series for influences impairing the detection of medium to long-term trend of a series [Dolado, Jesús and Marmol, 1999]. In this case, we employ the augmented Dickey and Fuller (ADF) and Phillip-Perron (PP) tests to examine the presence of unit root. This is because these tests are simple to understand and provide more convenient procedures to determine the properties of time series data. The tests have been carried out using E-Views 5 software. In the choice of optimal lag length, the Akaike Information Criteria (AIC) is used in respect of ADF test whilst the Bartlett Kernel lag length is used for the PP test. These tests are based on the Mackinnon one-sided P-values. In this case, we test the null hypothesis of non-stationarity of government expenditure and revenue against the alternative hypothesis of stationarity of the variables. These tests will verify the stationarity properties of government revenue and expenditure series of Ghana. This means, in order to use the causality test, the variables are required to be stationary at their level or upon differencing to an appropriate level.

The econometric software program used for this research was econometric views (E-Views). All three regressions were estimated using panel data analysis mainly to improve on the degrees of freedom since there were 19 cross-section and ten time series, too small for either cross-section or time series methods. The data was not only short but contained several structural breaks. Therefore, use of panel unit root tests – Levin et al. (2002) and Im et al. (2003), the augmented Dickey Fuller (ADF) Fisher x 2 (Dickey and Fuller, 1979) and the Phillips-Perron (PP) Fisher x 2 (Phillips and Perron, 1988) – was utilized to confirm the non-scientific visual analysis of the series plots. Improved sanitation facilities, life expectancy, carbon dioxide emissions, immunization DPT and immunization measles, adult literacy, urbanization, primary school enrollment and government expenditure on education are stationary in levels, while the remaining variables appear to be integrated of order zero [I (0)] but with structural breaks. These results are not reported but are available on request. They imply that panel OLS provides consistent estimates for the three models above.

The focus areas of the study were planning process, project appraisal criteria, source of funds and management responsibility as determinants influencing government expenditure on public[r]

Malaysia is a developing Islamic state that faced budget deficit since 1998. But it is not accepted by all and hopes that state should be in a position of either balance budget or surplus budget. The optimum level of Government budget is the state where government expenditure is totally offset by source of government revenue and that can be achieved through increasing tax revenue or decreasing expenditure. The aim of this study to find out the theoretical relationship between the revenue and the expenditure in Malaysia using the four hypotheses from literature study. The study finds out that although majority of the government revenue is from direct tax, the government spending only varies due to change in indirect tax revenue and non-tax revenue. Basically the study is analytical in nature and based on data collected from published sources focusing on the impact of the revenue and the expenditure on the continuous development of the Malaysia. Finally, we try to suggest to the authority to follow the proper rules and guidelines at the time policy making whereby they will be able to coup up with the optimum revenue and relevant expenditure in the state.

The result indicates that 83 percent of the total variation in per capita income has been explained by GEH, GED and GBC taken together. This is a good fit since the variation explained outside the model is just 17 percent. The result indicates that the one period lag value of government expenditure on health has significant and positive impact on the per capita income. An increase in per capita income is an indication that improvement in government spending on the health sector could reduce the level of poverty in Nigeria. The low elasticity however indicates that government expenditure on health did not have the desired impact as regards poverty reduction. The result indicates that government expenditure on education has a significant and positive impact on the per capita income. The significance of government expenditure on education is supposed to be symptomatic of a reduction in the level of poverty except for the low elasticity. The result shows that the government expenditure on building and construction in the immediate past period has a positive and significant impact on the level of per capita income. The low elasticity however indicative that government expenditure on building and construction has not gotten the desired impact as regards poverty reduction. The statistical significance of the ECM indicates a satisfactory speed of adjustment.

The existence of long-run equilibrium relationship between government revenue and expenditure in Tanzania is tested by using the standard Johansen cointergration technique. The Johansen technique goes through two stages as follows. In the first stage, we simply utilize the ADF test in order to determine the stationarity of time series data and ascertain whether both government revenue and government expenditure in Tanzania are integrated with the same order. The ADF test at this stage is very essential since econometric theory postulates that cointegration test is permitted only when government revenue and expenditure exhibit the same order of intergration. Mulok et al. (2011). In the second stage, we run the cointegration test for the government expenditure and revenue. However, before doing that, the optimal lag length must be selected from the vector auto-regression (VAR) model. The reason why we are doing this is that VAR estimates obtained from lag length which differ markedly from the true lag length are inconsistent, Braun and Mittnik (1993). Indeed, Lütkepohl (1993) argue forcefully that selecting a higher order length than the true lag length increases the chances for the mean-square forecast errors. Likewise, selecting the lower order lag length than the true lag length often generates auto- correlated errors. Lütkepohl et al. (2000) show that the cointegration test as proposed by Johansen involves two likelihood ratio tests, namely; trace statistic and the maximum eigenvalue statistic as shown in Equations 4 and 5 respectively.

The efficient government finance will increase economic growth and thereby income distribution. This research has been formulated an efficiency theory of production and finance. This research compared the government expenditure patterns into two situations. One, when a government borrows and accordingly allocates resources for productive expenditures for private and public finance. Another situation is that when a government borrows and fixed the resources for productive expenditure for only public finance. A comparative efficiency theory of production and finance are being formulated to test the general equilibrium of production of goods and services. This general equilibrium theory of efficient production of a firm has been made a conclusion that government resource allocation in both for private and public finance is efficient and never creates economic distortion even if these resources are borrowed form domestic sources. These domestic sources might be private commercials banks or any other financial institutions. The government resource allocation is not efficient when the government borrowing is fixed only for increasing public finance. This process implies diminishing return and thus increases public expenditure implicitly. Increasing nonproductive government expenditure will expand the size of the government and accordingly reduce economic growth in the long run. But both the private and public finance from borrowing will not hamper the efficiency of the production of a firm and accordingly reduce economic distortion. The tendency of reducing economic distortion will ultimately increase economic growth and economic welfare as well.

We may summarize our conclusions as follows. Under circumstances like those of a Great Depression — that is, when a disturbance to the financial sector results in insufficient aggregate demand even with the central bank’s policy rate at the lower bound of zero, and when there is feared to be a substantial probability of the con- straint continuing to bind for years to come — standard models of the kind widely used in analyses of monetary stabilization policy imply that the government expen- diture multiplier should be larger than one, and may be well above one. Moreover, in the case of the kind of (purely forward-looking) monetary policy assumed in the analysis above, we have found that not only is there a large effect on output of an increase in government expenditure under Depression-like circumstances, but up to a certain point an increase in government purchases will increase welfare as well; in the case of a sufficiently persistent disturbance (the case in which the zero bound can lead to a serious output collapse), the optimal increase in government purchases can be nearly as large as the increase that would be required to completely eliminate the “output gap,” i.e., to raise output to its flexible-price equilibrium level (which will itself be higher due to the temporary increase in government purchases). Hence a case can be made for quite an aggressive increase in government purchases under such circumstances, even taking account of the increased tax distortions required in

This study also relates to the literature on matching models of money and capital; see for example, Shi (1999), Menner (2006), Williamson and Wright (2010), Aruoba et al. (2011), Bencivenga and Camera (2011) and Waller (2011). Our study di¤ers from these studies by allowing for endogenous economic growth in the long run. Chu et al. (2014) also consider the e¤ects of in‡ation on endogenous economic growth in a matching model of money and capital. Their model generates endogenous growth via capital externality and does not exhibit equilibrium indeterminacy due to the absence of productive government expenditure. Our model generates endogenous growth via productive government expenditure and features a unique equilibrium with the same comparative static e¤ects of in‡ation as in Chu et al. (2014) under one parameter space but also multiple equilibria with di¤erent comparative static e¤ects of in‡ation under another parameter space that is empirically more relevant. In other words, the analysis in this study nests the analysis in Chu et al. (2014) as a special case. Furthermore, we generalize the model to the case of asymmetric degrees of capital intensity in the two markets and …nd that they have di¤erent implications on equilibrium dynamics and the e¤ects of in‡ation.

From the graph shows that the human development index continues to experience improvements from year to year. The increase in the index shows an improvement in development in NTB including on the forming side, namely in terms of health. Although there are several regions in 2011, they have not fully met the minimum standard of 10% APBD for health, but in the majority (in part of 2011 and 2016), local governments have allocated a large amount of the 10% budget for health. These expenditures should encourage health improvements in NTB. Given the fact that government accountability at the district / city level is still low, the question is that can the role of government agencies have a real influence on improving human development (human development index). With the low accountability of municipal district government agencies it actually leads to the assumption that the role of the government becomes ineffective and does not have an impact on development. Many poor people lack adequate access to health. Government programs can help to set a minimum standard of living that is appropriate for them so that they deserve assistance. Government programs can be in the form of direct cash assistance, service of goods and services in direct medical care, subsidies, and various incentives for poor people to be able to meet their needs. Or in other forms indirectly that can provide benefits to the poor such as increasing certain goods and services that can be consumed by the recipient. (Hyman, 2010) The government basically has a role that helps improve public health. However, looking at some of the facts that the regency / city government on a national average does not perform well, it raises the question whether the role of the government really can affect the development of the health sector. So it needs to be further evaluated regarding the development impact of the government's role. Thus, in this study, the authors conducted an evaluation of the impact of development carried out by the NTB regional government in health. In this case is to see the effect of government expenditure on health functions as evidence of the government's role toward performance indicators as a measure by the health index. So this research takes a topic of Analysis of the Effect of Government Expenditures on the Health Index". This study aims to determine the effect of government spending on health in the achievement of health index in NTB in 2010-2016.

This study employed the use of longitudinal research design. This helped in investigating the linkage between government expenditure and tax revenue in Kenya within a time frame ranging from 2002 – 2017. This study was quantitative in nature which relied on secondary data for a period of sixteen years. The collected data was coded and processed with aid of a Statistical Package for Social Sciences (SPSS) version 23. The study analysed data through use of descriptive statistics which was presented in form of tables and graphs, test of association done by use of Pearson correlation and test of effects between variables through use of regression analysis. In the first regression model, the study tested the effect between government expenditure which was then taken to be independent variable and tax revenue as the dependent variable. Government expenditure was measured as a ratio of Total Government Expenditure

Kenya‟s investment by private individuals and firms has not been sustainable since the country attained independence. This rather sorry state of affairs has raised concern to the government since investment is considered a key component propelling economic growth and development. Government of Kenya has designed many policies aimed at encouraging private investment but little fruits have been borne. This study aimed at finding out the repercussions of government expenditure on private investment in Kenya. The study adopted VAR technique using time data for period 1963-2012. The research findings indicated that that both recurrent and development expenditure enhanced private investment. The reforms on public expenditure were found to deter activities of private investors. The study concluded that there was need for government to re- allocate funds towards project that are valuable to the private sector and eschew from those that contend with or crowd it out. The study recommended that government should undertake fiscal reforms in the areas that promote private investment. Such reforms were expected to encourage investors because that was a sign of government commitment prudent financial manage.

The relationship between government revenue and government expenditure has been an important topic in public economics, given its relevance for policy especially with respect to the budget deficit. The purpose of this paper is to investigate the relationship between government revenue and government expenditure in Ghana for the period of 1986 - 2012. We include GDP as a control variable into the model. Data properties were analyzed to determine their stationarity using the DF-GLS and PP unit root tests which indicated that the series are I(1). We find a cointegration relationship between government revenue and government expenditure. The causality tests indicate that there is a bidirectional causal relationship between government expenditure and revenues in both the long and the short run hence confirming the Fiscal synchronization hypothesis. The policy implication of the results suggests that there is interdependence between government expenditure and revenues. The government makes its expenditure and revenues decision simultaneously. Under this scenario the fiscal authorities of these countries with budget deficits should raise revenues and decrease spending simultaneously in order to control their budget deficits.

The relationship between government revenue and government expenditure has been an important topic in public economics, given its relevance for policy especially with respect to the budget deficit. The purpose of this paper is to investigate the relationship between government revenue and government expenditure in Ghana for the period of 1986 - 2012. We include GDP as a control variable into the model. Data properties were analyzed to determine their stationarity using the DF-GLS and PP unit root tests which indicated that the series are I(1). We find a cointegration relationship between government revenue and government expenditure. The causality tests indicate that there is a bidirectional causal relationship between government expenditure and revenues in both the long and the short run hence confirming the Fiscal synchronization hypothesis. The policy implication of the results suggests that there is interdependence between government expenditure and revenues. The government makes its expenditure and revenues decision simultaneously. Under this scenario the fiscal authorities of these countries with budget deficits should raise revenues and decrease spending simultaneously in order to control their budget deficits.

Fan et.al (2008) examined the link between poverty reduction and government spending for Thailand for the period 1977-1999. The findings of the results suggest that various components of government expenditure have different effect on poverty reduction. For example, government expenditure on rural electricity has the largest marginal return for the country. The findings show that 272 poor are lifted out from poverty for every million baht spent on rural electricity, whereas130 poor are lifted out of poverty for every million baht invested in agricultural research. These are followed by expenditure in education and in irrigation.

South Africa agricultural sector is dualistic in nature, consisting of a vibrant commercial which occupies about 80% of agricultural land and a smallholder farming sector that occupies the remaining 20% of agricultural land (Chisasa, 2015; OECD, 2011). Compared to the averages in Africa and the world, the agricultural sector energy intensity in South African is noticeably higher. The performance of South African agricultural sector with respect to the sectors’ growth and contribution to total GDP has been abysmally low and appalling. Figure 1 illustrates that growth in the agricultural sector was highest in the years 1993, 1996 and 2008 accounting for 24 percent, 23.98 percent and 19.4 percent respectively. Aside these years, the sectors growth has been low and unstable as shown in Figure 1. Similarly, Figure 1 indicates that the sector has consistent declining contribution to total GDP in South Africa. The year 1988 is observed to be the year the sector recorded its highest contribution to total GDP in the country with about 5.8 percent contribution. Between 1995 and 2015, the average contribution stood at a low level of 3.12 percent. In the same manner, the share of government expenditure in the agricultural sector in South Africa has been low over the years. The average share of government spending in the sector to total government spending between 1995 and 2015 is 1.7 percent. It appears there is a neglect of the agricultural sectors in South Africa. This was also articulated in an earlier study by Meyer et al. (2009) that there is government underinvestment in agricultural research, deterioration in public sector support service delivery which are imperative to maintaining agriculture sector and inadequate infrastructural investment in agriculture. Without doubt and as equally noted by Mogues et al. (2015) and Goyal and Nash (2017), this low share falls short of the 2003 Maputo agreement which was reaffirmed at the Malabo Declaration in 2014 by African heads of state and government pledge to allocate 10 percent of their national budgets to the agricultural sector as part of the Comprehensive Africa Agriculture Development Programme (CAADP). This worrisome trends of the agricultural sector performance in South Africa questions the ability of the sector to be a driver of food security.

an important factor for improving well%being and the results suggest that increases of government size are associated with the deterioration of economic performance, expansionary fiscal policies should be undertaken with particular care. In particular, in developing countries a cut in government expenditure should be undertaken together with the establishment of appropriate environmental regulation. However, in high income countries, a reduction of government size is found to be even more beneficial since it leads to improvements in both economic performance and environmental quality. These implications bear some resemblance to the EKC. In particular, countries with income level at the decreasing area of the EKC are more likely to have already established the environmental legislation and to have undertaken public expenditures for the improvement of environmental quality, thus they are susceptible to diminishing returns from a further increase in government size. On the other hand, when considering CO 2 emissions with a more global

Since the pioneering work on the endogenous growth theory by scholars, such as Romer [1] and Lucas [2], the effect of taxation on economic growth has been one of the most carefully examined topics in the field of economics (for example, Rebelo [3] and Jones et al. [4]). Recently, the related topic of the effect of differ- ent government expenditure financing on economic growth and welfare has been examined extensively in the literature, including Grinols and Turnovsky [5], Turnovsky [6], Palivos and Yip [7], Pecorino [8], and Gokan [9]. These pa- pers have considered the mix of tax, bond, and money financing to meet differ- ent government expenditures. Our paper considers the effect of government policy that involves resorting to income tax and money financing. Our study al- How to cite this paper: Kaneko, A. and

The purpose of this paper is twofold, namely to examine the effect of economic growth as well as that of government expenditure on environmental degradation, taking into account the dynamic nature of these relationships. The environmental Kuznets curve (hereafter EKC) hypothesis posits that in the early stages of economic development environmental degradation will increase until a certain level of income is reached and then environmental improvement will occur (Gross and Krugman, 1995). On the other hand, government expenditure has recently expanded in many countries to alleviate the adverse effects of the recent economic crisis, with a large fraction of GDP spent by governments affecting a variety of economic variables and prosperity in general. A recent strand of literature suggests that government spending is an important determinant of environmental quality (Lopez et al., 2011, Halkos and Paizanos, 2013; Galinato and Islam, 2014).