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Asymmetric Growth Impact of Social Policy: A Post-Shock Policy Scenario for Egypt

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  • Hany Abdel-Latif

    () (School of Management, Swansea University)

  • Tapas Mishra

Abstract

This paper empirically explores how fiscal policy represented by acceleration in government spending exerts asymmetric effects on economic growth in the context of a developing country, Egypt in particular. By allowing the theoretical plausibility of asymmetric effects of fiscal policy on economic activity, our research suggests that nothing can guarantee linearity between the growth impact of increasing and decreasing government expenditures. Using a non-linear ARDL model on Egypt data at both aggregated and disaggregated levels- for the period 1980-2013, this paper provides new evidence of a non-linear relationship between government spending and economic growth.

Suggested Citation

  • Hany Abdel-Latif & Tapas Mishra, 2016. "Asymmetric Growth Impact of Social Policy: A Post-Shock Policy Scenario for Egypt," Working Papers 1035, Economic Research Forum, revised Aug 2016.
  • Handle: RePEc:erg:wpaper:1035
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    References listed on IDEAS

    as
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