The Relation between Government Expenditures and Economic Growth in Thailand
AbstractThe notion that more government expenditures can stimulate growth is controversial. The causation between government expenditures and economic growth in Thailand is examined using the Granger causality test. There is no cointegration between government expenditures and economic growth. A unidirectional causality from government expenditures to economic growth exists. However, the causality from economic growth to government expenditures is not observed. Additionally, estimation results from the least square method with lagged variables of economic growth, government expenditures and money supply show the strong positive impact of government spending on economic growth during the period of investigation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46070.
Date of creation: Jan 2007
Date of revision:
Economic growth; Government expenditures; Granger causality test; Least Square Estimation;
Find related papers by JEL classification:
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
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