The Relationship between Federal Government Revenues and Expenditures in Pakistan
AbstractThe paper investigates the relation between expenditures and revenues of the federal government of Pakistan for the period 1978-79 to 2008-09 using the Toda and Yamamoto (1995) methodology. The results show that there is a unidirectional causality from expenditures to revenues. The results indicate evidence of the spend-revenue hypothesis for Pakistan. The Potential investors may construe this government behaviour negatively, therefore, the investment decisions may take into account the possibilities of paying higher taxes in future.
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Bibliographic InfoArticle provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.
Volume (Year): 49 (2010)
Issue (Month): 4 ()
Revenue; Expenditure and Causality;
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