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Impact of Expenditure on Economic Growth in Pakistan

Author

Listed:
  • Faqeer Muhammad
  • Tongsheng Xu
  • Rehmat Karim

Abstract

This study aimed to find out the impact of expenditure on economic growth in Pakistan, using the time series data for the period 1972 to 2013. Secondary data was acquired from World Development indicators and Pakistan Bureau of Statistics. Augmented Dicky Fuller Test (ADF) test was applied to check the stationarirty of the data. Johansen Cointegration and Granger Causality tests were applied to empirically investigate the relationship between given variables (expenditure and economic growth) in Pakistan. The cointegration results indicated that there is no any relationship between expenditure and national income in the long run.

Suggested Citation

  • Faqeer Muhammad & Tongsheng Xu & Rehmat Karim, 2015. "Impact of Expenditure on Economic Growth in Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(2), pages 231-236, February.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:2:p:231-236
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    References listed on IDEAS

    as
    1. Bağdigen, Muhlis & Çetintaş, Hakan, 2003. "Causality between Public Expenditure and Economic Growth: The Turkish Case," MPRA Paper 8576, University Library of Munich, Germany, revised 07 Dec 2003.
    2. repec:wbk:wbpubs:18237 is not listed on IDEAS
    3. Mohammed MoosaAgeli, 2013. "Wagner’s Law in Saudi Arabia 1970 - 2012: An Econometric Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(5), pages 647-659, May.
    4. repec:wbk:wbpubs:13191 is not listed on IDEAS
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    Cited by:

    1. Nabila Khurshid & Hamza Sharif & Mosab I. Tabash & Basem Hamouri & Asma Fiaz & Fozia Munir, 2023. "Analyzing the Impact of Foreign Capital Inflows and Political Economy on Economic Growth: An Application of Regime Switching Model," Economies, MDPI, vol. 11(7), pages 1-17, June.
    2. Sumbal Javed & Muhammad Tariq & Saima Urooge, 2017. "The Role of Public Spending and Credit Disbursement in the Agriculture Sector of Pakistan," Global Economics Review, Humanity Only, vol. 2(1), pages 34-41, December.
    3. repec:agr:journl:v:4(621):y:2019:i:4(621):p:181-200 is not listed on IDEAS
    4. Ali, Wajid & Munir, Kashif, 2016. "Testing Wagner versus Keynesian Hypothesis for Pakistan: The Role of Aggregate and Disaggregate Expenditure," MPRA Paper 74570, University Library of Munich, Germany.
    5. Ebrahim Merza & Noorah Alhasan, 2016. "Public Spending and Economic Growth in the Rentier State: The Case of Kuwait," Asian Social Science, Canadian Center of Science and Education, vol. 12(8), pages 160-160, August.
    6. Omoshoro-Jones, Oyeyinka Sunday, 2016. "A Cointegration and Causality Test on Government Expenditure –Economic Growth Nexus: Empirical Evidence from a South African Province," MPRA Paper 102085, University Library of Munich, Germany, revised 17 Oct 2017.
    7. Kashif MUNIR & Wajid ALI, 2019. "Wagner versus Keynesian Hypothesis: Role of aggregate and disaggregate expenditure in Pakistan," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 181-200, Winter.

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