Is the Relationship Between Government Spending and Private Consumption in Egypt Symmetric?

Almosabbeh, Imadeddin Ahmed

doi:10.1177/0973801020920096

Cited by 6 publications

(4 citation statements)

References 19 publications

(31 reference statements)

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“…b-Research and studies related to the impact of these remittances on the economies of the countries receiving the labor, such as the Gulf Cooperation Council (GCC) countries, especially the KSA, which are rare. Alkhathlan (2013) focused on determining the nature of the relationship between economic growth and ELR in the KSA during the 1970-2010 period using the ARDL method and an error correction model. The results of that study showed that there was a negative relationship between economic growth and ELR in the short and long term.…”

Section: Theory and Literature Reviewmentioning

confidence: 99%

The Impact of Expatriate Remittances on Economic Growth in the Kingdom of Saudi Arabia

المصبح¹

2024

المجلة العربیة للإدارة

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This study seeks to uncover the nature of the relationship that expatriate labor remittances have in the economic growth of Saudi Arabia. Autoregressive Distributed Lags (ARDL) and Non-Linear ARDL (NARDL) are used as a method to discover the influence and nature of the remittances on Saudi GDP growth. This method, NARDL, enables us to detect whether the relationship between the expatriate labor remittances and Economic growth is symmetric or asymmetric. This Study depending on data collected from the World Bank, Saudi Central Bank (SAMA), and the Saudi General Authority of Statistics to cover the period 1970-2016. The study concludes that the relationship between labor remittances and Saudi Arabian economic growth is asymmetrical; a one percent decrease in remittances increases GDP by 0.837 percent, while a one percent increase in remittances increases GDP by 0.291 percent.This study recommends that the Kingdom of Saudi Arabia continue to maintain remittances at least their current level.

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Section: Theory and Literature Reviewmentioning

confidence: 99%

The Impact of Expatriate Remittances on Economic Growth in the Kingdom of Saudi Arabia

المصبح¹

2024

المجلة العربیة للإدارة

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“…The findings show that government consumption negatively affects private consumption therefore government consumption does not stimulate aggregate demand in ECOWAS countries. Almosabbeh (2020) analyzed the relationship between government spending and private consumption and concluded that the effect of government spending on household spending was not significant in the long run, although the two variables were substitutable for the other with a coefficient of 0.8699 which is quite high. Relationships and aggregation are caused by positive shocks to government spending [12].…”

Section: -Literature Reviewmentioning

confidence: 99%

“…Almosabbeh (2020) analyzed the relationship between government spending and private consumption and concluded that the effect of government spending on household spending was not significant in the long run, although the two variables were substitutable for the other with a coefficient of 0.8699 which is quite high. Relationships and aggregation are caused by positive shocks to government spending [12]. Dawood & Francois (2018) conducted a panel analysis at the level of 24 African countries examining the relationship between private consumption and public consumption which showed that private and government consumption are Edgeworth's substitutes [13].…”

Section: -Literature Reviewmentioning

confidence: 99%

The Complementary Effect between Private Consumption and Government Spending: Effect on the Economy

Kida

2021

Emerg Sci J

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This paper analyzes the relationship between final consumption and government spending, using the correlation and linear regression model. The objective of the research is whether government expenditures are complementary, substitute, or not related to private consumption to give positive effects on the economy. Methodology, quantitative secondary data were obtained from the World Bank, for five countries and processed with SPSS, 21. The empirical analysis was verified through, Bivariate and Partial correlation and normality test. The Result, first, shows that government spending complements and replaces final consumption. Second, it is also confirmed that even when interacting with other variables, the complementary effect of final consumption is not eliminated despite the shocks coming from government spending. Third, by adding other variables to the model, the issue of complementarity and substitutability of the two main variables is not lost. As a result, findings, confirm that private consumption (InCt) and government spending (InGt), Gross Savings (GS), and per capita income (GDPpc), are in statistically significant and positive relationships with each other. The novelty of the paper is, government expenditures cause an increase in private consumption is to high value, showing the complementary effect of government expenditures on private consumption. Based on health expenditures, education, public order, internet provided by the state have increased the demand of families for these services, causing an increase in the share of services provided by the private sector.JEL Classification: E21; H5; E2; R0. Doi: 10.28991/esj-2021-01292 Full Text: PDF

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“…The NARDL model separates the asymmetric effects of positive and negative shocks and is used for a small sample size. In addition, this model could not be applied for the second-order integral series (Almosabbeh, 2020;Kassi, Sun, Ding, Rathnayake, & Assamoi, 2019). This study used the NARDL approach for its ability to examine the asymmetric effect of the independent variable on the dependent variable (the effect of an asymmetric exchange rate fluctuation on money demand).…”

Section: Non-linear Ardl Approach (Nardl)mentioning

confidence: 99%

Asymmetric Impact of Exchange Rate Fluctuations on Money Demand in Sudan

Elhassan

2021

Asian Economic and Financial Review

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This study aims to examine the asymmetric impact of exchange rate fluctuations on money demand in Sudan. The non-linear autoregressive distributed lag (ARDL) model was applied to data pertaining to 1960-2018. The empirical results suggest that the impact of the exchange rate is asymmetric in the long and short terms. In the short term, a positive change in the exchange rate increases money demand, while a negative change in the exchange rate has no effect. However, in the long term, a positive change in the exchange rate increases money demand, and a negative change has the same effect. In the long term, a negative change in the exchange rate has a greater effect than a positive change, indicating that a depreciation of the Sudanese pound has a greater effect. The difference between the positive and negative changes in the exchange rate indicates its asymmetric effect on money demand in Sudan. This study recommends that monetary policy in Sudan should target such positive and negative changes in the exchange rate, and that decision makers should adopt policies that achieve exchange rate stability. In addition, policymakers should also aim to establish an industrial production base to reduce reliance on imports.Contribution/Originality: This study contributes to the existing literature on Sudan. This study uses the new estimation methodology of the non-linear autoregressive distributed lag (ARDL) model. This paper contributes the first logical analysis of the asymmetric impact of exchange rate fluctuations on money demand in Sudan.

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Is the Relationship Between Government Spending and Private Consumption in Egypt Symmetric?

Cited by 6 publications

References 19 publications

The Impact of Expatriate Remittances on Economic Growth in the Kingdom of Saudi Arabia

The Impact of Expatriate Remittances on Economic Growth in the Kingdom of Saudi Arabia

The Complementary Effect between Private Consumption and Government Spending: Effect on the Economy

Asymmetric Impact of Exchange Rate Fluctuations on Money Demand in Sudan

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