Economic growth and government spending in Malaysia: a re-examination of Wagner and Keynesian views

Govindaraju, Vgr Chandran A L; Rao, Ramesh P.; Anwar, Sajid

doi:10.1007/s10644-010-9099-z

Cited by 34 publications

(19 citation statements)

References 42 publications

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“…The policy implication of this finding is that both the short-run and long-run expenditure has a significant effect on economic growth of Nigeria. Also, [12] examine Wagner's law and Keynesian hypothesis in Malaysia by making use of annual data spanning 1970 to 2006. The empirical findings show that within a bivariate and multivariate framework as well as ARDL technique, Wagner's law does not hold in the case of Malaysia in the long-run.…”

Section: Keynesian Hypothesismentioning

confidence: 99%

Public Sector Spending and Economic Growth in Nigeria: In Search of a Stable Relationship

Idris

Bakar

2017

ARJASS

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In this study, recent development in government expenditure and epistemological literatures on the relationship between public spending and economic growth in Nigeria are examined. The primary aim of this paper is to explore the relationship between government expenditure and economic growth with the view to establishing a stable relationship. In view of that, an ARDL model is employed to provide the framework for estimating the existence or otherwise of the equilibrium relationship among the examined variables. However, government as an institution that provide welfare to the populace has a major role to play in deciding where priority spending should be allocated in order to enhance the developmental process and provide sustainable growth in the growing economy. In all submissions that debated on the relationship between public sector spending and economic growth, Keynesian philosophy was among the most prominent and celebrated in contrast to Wagner's Law. Keynes regards government spending as an exogenous factor which can be utilised as a policy instrument to promote economic growth. Despite the diverse and conflicting empirical evidence on the relationship between public sector expenditure and economic growth that prevail in the literature, the empirical findings from this paper based on the estimated result from ARDL model reveals the existence of positive and significant relationship between public spending on economic growth in Nigeria. Undeniably, government expenditures are considered to be highly important in creating opportunities and widening the productive base at Review Article 2 which developing countries can grow, Nigeria is inclusive. To achieve accelerated economic growth, there is need for an in-depth and broad macroeconomic reform in the Nigerian public finance to include certain features of transparency and effectiveness in the implementation of budgetary process. An essential part of the reform policy should be the review of public sector's roles and responsibilities in the development process and concentrate on the priority areas rather than act as a substitute of the private sector. The inclusion of certain measures on the reform policy will appear satisfactory, for instance, expenditure on public goods that improves the allocative efficiency in the presence of positive externalities should be accorded high priority, including investment in infrastructure, more access to information and communication technology, expenditure on research and development, as well as diversification of the economy.

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Section: Keynesian Hypothesismentioning

confidence: 99%

Public Sector Spending and Economic Growth in Nigeria: In Search of a Stable Relationship

Idris

Bakar

2017

ARJASS

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“…Thus, Wagner law was supported in the short run. Meanwhile, Govindaraju et al [12] examines Wagner's law and the Keynesian hypothesis using Auto Regressive Distributed Lag (ARDL) approach to investigate cointegration in Malaysia, using time series data from 1970 to 2006. The analysis revealed that aggregate government spending Granger causes the real GDP, which supports Wagner's law within bivariate framework.…”

Section: Empirical Literaturementioning

confidence: 99%

Nigeria Economic Recess versus Wagner’s Law and Keynesian Proposition

Adedokun¹,

Olaniyi²

2017

Int J Econ Manag Sci

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“…Based on this premise, this study is motivated to investigate the effect of government general spending on human development in Nigeria. Several domestic and foreign studies on government expenditure have been on economic growth (Chandran Govindaraju, Rao & Anwar, 2011;Al-Bataineh, 2012;Gangal & Gupta, 2013;Hasnul, 2015;Al-Shatti, 2014;Lahirushan & Gunsekara, 2015;Torki, 2016;Jelilov & Musa, 2016;Muguro, 2017) among others. Kairo, Mang, Okeke and Aondo (2017) did a similar study in Nigeria, but failed to classify government expenditure into development and nondevelopment in order to determine their specific effect on HDI.…”

Section: Introductionmentioning

confidence: 99%

Government General Spending and Human Development: A Case Study of Nigeria

Omodero¹

2019

Academic Journal of Interdisciplinary Studies

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The study assesses the impact of government general spending on human development in Nigeria from 2003 to 2017. The purpose is to determine the response of human development index (HDI) to recurrent and capital government expenditure. In order to achieve this objective, the multiple linear regression model linking the study variables was applied while Ordinary Lease Squares method was used to analyze the model. The results indicate that government’s capital expenditure and inflation have insignificant negative influence on HDI, corruption does not have any impact on HDI but government recurrent expenditure has strong and significant positive impact on HDI. The study concludes that resources on recurrent expenses should be reduced while more money should be invested in capital projects for human capital development in Nigeria.

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Economic growth and government spending in Malaysia: a re-examination of Wagner and Keynesian views

Abstract: ARDL bounds approach, Spending on education, GDP growth, Malaysia, Government spending, H52, C22, O23, E62,

Cited by 34 publications

References 42 publications

Public Sector Spending and Economic Growth in Nigeria: In Search of a Stable Relationship

Public Sector Spending and Economic Growth in Nigeria: In Search of a Stable Relationship

Nigeria Economic Recess versus Wagner’s Law and Keynesian Proposition

Government General Spending and Human Development: A Case Study of Nigeria

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