The long-run relationship between public consumption and output in developing countries: Evidence from panel data

Francois, John Nana; Keinsley, Andrew

doi:10.1016/j.econlet.2018.10.022

Cited by 9 publications

(7 citation statements)

References 18 publications

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“…We test for cointegration with the panel and group test statistics suggested by Pedroni (1999) and report the Fisher statistic proposed by Maddala and Wu (1999) which follows a 2 distribution with 2 x N degrees of freedom. However, as these tests do not account for potential cross-sectional dependence, we follow Francois and Keinsley (2019) and Pedroni (1999) and adopt a residual-based, two-step approach. In addition, we extend the approach with a Common Correlated Effects (CCE) estimation procedure developed by Pesaran (2006) by augmenting the cointegrating regression with the cross-sectional averages of the dependent variable and the observed regressors as proxies for the unobserved factors, which takes account of possible crosssectional dependence from unobserved common factors.…”

Section: Resultsmentioning

confidence: 99%

The long-run relationship between finance and income inequality: Evidence from panel data

Thornton

Tommaso

2020

Finance Research Letters

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We use heterogeneous panel cointegration techniques to examine the long-run effect of financial development on income inequality in a panel of 119 countries from 1980 to 2015. We include real GDP per capita in the cointegration relation and explicitly deal with cross-sectional dependence in the data that arises due to unobserved common factors. On average, financial development reduces income inequality in the long-run, with the result robust to different measures of finance and across country income groups.

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Section: Resultsmentioning

confidence: 99%

The long-run relationship between finance and income inequality: Evidence from panel data

Thornton

Tommaso

2020

Finance Research Letters

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“…For further robustness, we also estimated equation (2) using the ratio of the government current and capital expenditure to non-oil GDP instead of using their levels. This specification is theoretically discussed by Landau (1983Landau ( , 1986, empirically used by Francois and Keinsley (2019) among others and Al-Yousif (2000) for Saudi Arabia. We employed the same methods (i.e.…”

Section: Notesmentioning

confidence: 99%

The impact of fiscal policy on non-oil GDP in Saudi Arabia

Hasanov

AlKathiri

Alshahrani³

et al. 2021

Applied Economics

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This paper examined the impact of fiscal policy on non-oil GDP in Saudi Arabia, the world's largest oil exporter, over the annual period 1989-2018. We employed various cointegration methods within the framework of the augmented production function and estimated that government current and capital expenditure, in addition to non-oil labour and capital, have statistically significant positive effects on non-oil GDP. We tested whether the recent oil price decline and the implemented economic reforms caused a break in the relationship that non-oil GDP establishes with the mentioned variables and found that there was no break in either the long-run or the shortrun relationship. The study concluded with some policy insights that could be useful for fiscal authorities to promote non-oil economic development.

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“…For further robustness, we also estimated the impacts of government current and capital expenditure, and non-oil capital and labor using the ratio of the fiscal indicators to non-oil GDP. This was the methodology used by Francois and Keinsley (2019), following the theoretical discussions in…”

Section: Empirical Analysismentioning

confidence: 99%

“…We assume a 5% depreciation rate and that the initial level of the capital stock is assumed to be 1.5 times non-oil GDP in 1989. Lastly, we exclude government capital expenditure in real terms (GCA) from the resulting series to avoid double accounting in the empirical analysis (Mahraddika 2019;Francois and Keinsley 2019;Herzer and Morrissey 2013).…”

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confidence: 99%

The Impact of Fiscal Policy on Non-Oil GDP in Saudi Arabia

Hasanov

AlKathiri

Alshahrani³

et al. 2020

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The King Abdullah Petroleum Studies and Research Center (KAPSARC) is a non-profit global institution dedicated to independent research into energy economics, policy, technology and the environment across all types of energy. KAPSARC's mandate is to advance the understanding of energy challenges and opportunities facing the world today and tomorrow, through unbiased, independent, and high-caliber research for the benefit of society. KAPSARC is located in Riyadh, Saudi Arabia.

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The long-run relationship between public consumption and output in developing countries: Evidence from panel data

Cited by 9 publications

References 18 publications

The long-run relationship between finance and income inequality: Evidence from panel data

The long-run relationship between finance and income inequality: Evidence from panel data

The impact of fiscal policy on non-oil GDP in Saudi Arabia

The Impact of Fiscal Policy on Non-Oil GDP in Saudi Arabia

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