The mechanism in which government spending on public infrastructure is expected to affect the pace of economic growth depend largely upon the precise form and size of total public expenditure allocated to economic and social development projects in the economy. 47 the romanian economic journal government expenditure and economic growth: an empirical analysis of the armey curve in nigeria olaleye, samuel olasode 1 edun, femi 2 bello, hassan taiwo3 taiwo, shakirudeen babatunde4 this paper discusses the theoretical and empirical basis for the existence of an optimal size of government as depicted by armey curve, which is an inverted u curve, where the. Local economic development policies 100,000 in the local population6 city government spending for economic development usually is between $7 and $16 per capita. Government expenditure and economic development [v kumar] on amazoncom free shipping on qualifying offers. Keynesian economics represented a new way of looking at spending, output and inflation previously, classical economic thinking held that cyclical swings in employment and economic output would be.
The correlation between government expenditure and economic growth has continued to generate series of debates in the economic literature economic development of. Research and development expenditure (% of gdp) from the world bank: data. Government expenditure on its impact on economic development and growth of nations in nigeria and other developing economies, over the years, there has been a steady increase in government spending without an. Government expenditure on education, total (% of gdp) from the world bank: data watch annual meetings development events from oct 10-13 comment and engage with experts.
Expenditure allocated to economic and social development projects in the economy when public expenditure is incurred, by itself it may be directed to particular investments or may be able to bring about re-allocation of. Socio-economic development of nigeria and indeed of any country (ejere, 2011) the objective of this study is to critically evaluate the effect or impact of human capital development on economic growth in nigeria, using quarterly data. Development expenditure components and government debt in malaysia based on the related question, the general objective is to examine the relationship between government development expenditure components and.
Source for economic growth in long-run, and in short run variations in government expenditure are generally derived by oil revenue shocks therefore, the volatility in oil revenue requires public. Government expenditure is indeterminate of economic growth kenya has had mixed economic performance since independence and this study sets out to investigate the role of government expenditure components on economic. Using data available from the world bank's world development indicators (wdi) database, it is possible to estimate the bivariate relationship between government education expenditure and gdp. Government expenditures seem to have a negative effect on economic growth regarding the second strand of literature, which differentiates the impact of various categories of public expenditure, landau (1983), using data for developing countries over.
The negative impact of tax on growth is also far greater than the benefits to growth that might arise from increased government spending, even if that spending is on investment or subsidising private sector research and development. Also, government should increase its expenditure on economic services such as agriculture, construction, transport, communication, electricity and other economic services and finally, government should increase its. Int tax public finance (2014) 21:578-597 doi 101007/s10797-014-9313-4 government size, composition of public expenditure, and economic development.
Government can affect economic growth, at least in the long run, was via its impact on investment in capital, education and research and development reduction of growth in these models occurred when public expenditures. Journal of economic development volume 23, number 2, december 1998 71 government expenditure and economic growth in malaysia dipendra sinha1 this paper studies the relationship between gdp and government expenditure in malaysia. A causal relationship between government spending and economic development: an empirical examination of greek economy nikolaos dritsakis - antonis adamopoulos. Daniel is a former mckenna senior fellow in political economy most government spending has a negative economic impact the deficit is not the critical variable the key is the size of government.
Government expenditure positively affect economic growth for underdeveloped country nigeria by using the johansen co-integration and revealed that there is long run relationship between government. Government expenditure increases more than proportionally with economic activity the underlying idea is that goods and services generally provided by the government sector. To government expenditure, and where government revenue falls short of basic government obligations, the government is forced to borrow (either domestically or externally) which if continued over a period of time terms to exacerbate the worsening economic conditions in the.