The Relationship Between Government Spending and Economic Growth Revisited

Wahyudi, Wahyudi

doi:10.32479/ijefi.10614

Cited by 22 publications

(35 citation statements)

References 16 publications

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“…BPKP (2021) and Santosa (2022) states that GISA will improve the quality of public services, increase the The results shows that the local budgeting has a significant effect on HDI, IEGI, poverty and per capita GRDP. These results support Fadilah et al, (2018), Mustaqimah et al, (2017), Nurlina, (2015, Patanduk et al, (2019), Putri et al, (2018), andWahyudi, (2020) which states that the local budgeting is primarily for education, health and capital expenditures have a significant impact on welfare. However, these result also in line with Jais (2015) and Rotinsulu et al (2016) study that suggests the local budgeting does not have a significant impact on the unemployment rate.…”

Section: Discussionsupporting

confidence: 85%

“…Local budgeting is used to provide basic needs for society. Previous studies find a positive correlation between governments expenditure and welfare indicators, including HDI (Fadilah et al, 2018;Fahmi & Dalimunthe, 2018;Palayukan, 2019), IEGI (Purwanti & Rahmawati, 2021;Safitri et al, 2021), reducing poverty (Mustaqimah et al, 2017;Pratama & Utama, 2019), decreasing unemployment (Kaharudin et al, 2019;Muslim, 2014), and economic growth (Nurlina, 2015;Patanduk et al, 2019;Putri et al, 2018;Wahyudi, 2020). However, an increase in the local budgeting does not necessarily mean an increase in welfare (Leland, 2005).…”

Section: Literature Reviewmentioning

confidence: 97%

“…These resources are managed by collecting taxes or levy fairly and efficiently (Ebdon, 2005) and spending them on the public goods and services (Leland, 2005) as stated in the local government budget. Nurlina (2015) and Wahyudi (2020) state that the government budget is one of the instruments to promote welfare so that government budget needs to be managed carefully.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Financial Accountability, Internal Control and Government Expenditure on Social Welfare

Ferryono

Pudjihardjo

Prasetyia

2022

JICP

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One of the goals of the Indonesia is social welfare. However, there are still Indonesian people who suffer for living. The local government expenditure, which is expected to encourage welfare, still hasn`t show satisfactory results. This study aims to determine the impact of financial accountability, internal control and government expenditure on social welfare. This research was conducted in 508 districts/cities in Indonesia within period between 2015-2019. The results indicate that financial accountability has various effects on welfare. Only the unqualified opinion has a significant effect on all welfare indicators. The audit findings were not proven to have a significant effect on welfare. The results also indicate that internal control has a significant influence on all welfare indicators. The higher the internal audit capability and the internal control system maturity level, the greater the impact on promoting welfare. Government expenditure, in aggregate, has a significant effect on most welfare indicators. The results of this study further strengthen the role of internal control to promote welfare. Therefore, it is important that the local government considered improving the internal audit capability and the internal control system.

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Section: Discussionsupporting

confidence: 85%

Section: Literature Reviewmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

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The Impact of Financial Accountability, Internal Control and Government Expenditure on Social Welfare

Ferryono

Pudjihardjo

Prasetyia

2022

JICP

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“…However, Kuckuck [82] reached contrasting results in his research. Wahyudi [83], meanwhile, only reached conclusions supporting the Keynes Hypothesis. Lastly, Belke and Demir [84] concluded that while Wagner's Law is valid in some countries in the panel, Keynes Hypothesis is valid in other countries.…”

Section: Selected Literaturementioning

confidence: 93%

Wagner's Law vs. Keynesian Hypothesis: Empirical Evidence for G20 Countries

Öztaşkın¹,

Kara²

2022

aeb

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The economic growth-public expenditure relationship is one of the important subjects that both policymakers and scientists focus on during extraordinary conditions such as economic crises, natural disasters or epidemics. Despite the privatization practices and the efforts to adopt the minimal state approach proposed by neoliberalism, which have become widespread significantly since the 1970s, public expenditures increase the interest in the subject. The study analyses the validity of the Keynesian approach, which argues that public expenditures are a fiscal policy tool that supports economic growth, in G-20 countries, as opposed to Wagner's approach, which argues that economic growth is the reason for the increase in public expenditures. The analysis was carried out with the Pesaran CCEMG estimator, which considers cross-sectional dependence and heterogeneity, using annual data from 1994-2017. According to the findings, it could be stated that Wagner's Law is not valid in G-20 countries because the slope coefficient does not fulfil the condition of being more significant than 1, whereas the Keynesian approach is valid. Moreover, a bidirectional causality was discovered between economic growth and public expenditures. Consequently, public expenditures can be used as an effective fiscal policy tool to eliminate economic instabilities under political, economic, or extraordinary conditions such as COVID-19.

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“…Notably, the ultimate goal of any economic development process is welfare (Wahyudi, 2020). Africa has major development aspirations in the broader context of a global and continental economic development agenda (Economic Development in Africa Report 2016).…”

Section: Developmentmentioning

confidence: 99%

Effect of Militarisation on Development and Democracy in Africa

Bonga¹,

Mahuku²

2022

JDMS

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Africa's political democratic and economic growth remains dismal and the prospects for it improving in tandem with the Africa Agenda 2063 are bleak. Africa has plenty of mineral wealth and natural resources yet it remains the least developed region of the Third World. Self-inflicted tragedies galore, derailing the economic progress of the nations. This paper adopted descriptive and analytical methods in its discussion of the effect of militarisation on development and democracy in Africa. The development path of many African nations has no definite pattern to stir the much-required progress. Many policies have been brought forward to guide development with no significant improvement. Some reasons for policy failure may be caused by the way the institutions are being run. The concept of militarisation as brought by this study may add to the impacting factors. Militarisation comes in many forms, and within these forms exist the impacting ones to development and democracy in Africa. This paper offers evidence across Africa that militarypolitical power is detrimental to the positive effect of democracy and hence development. Corruption becomes common where nations are militarised further worsening the development path. Political and economic instability prevails in such nations due to human rights violations caused by militarisation. The study emphasizes the appropriate demilitarisation process for many African nations, establishments of effective civil-military relationships, upholding the rule of law, protecting human rights, avoiding racial and cultural discriminations, institutions autonomy, transparent and collaborative political environment, among other recommendations to ensure attainment of inclusive development and praised democracy. Militarisation is never linked to economic prosperity, rather perpetuates conflict and destruction of states. Post-colonial Africa is in dire need of tangible economic progress, and this is only possible when good policies are effected.

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The Relationship Between Government Spending and Economic Growth Revisited

Cited by 22 publications

References 16 publications

The Impact of Financial Accountability, Internal Control and Government Expenditure on Social Welfare

The Impact of Financial Accountability, Internal Control and Government Expenditure on Social Welfare

Wagner's Law vs. Keynesian Hypothesis: Empirical Evidence for G20 Countries

Effect of Militarisation on Development and Democracy in Africa

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