Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance
This study examines the impact of government spending efficiency on the economic growth of 115 countries with value-added tax (VAT) system. We seek to examine the moderating role of the VAT system and country governance in the relationship between public spending efficiency and the economic growth o...
| Main Authors: | , |
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| Format: | Proceeding Paper |
| Language: | English English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/48040/ http://irep.iium.edu.my/48040/1/Public_Spending_Efficiency_and_Economic_Growth.pdf http://irep.iium.edu.my/48040/2/EABM2015.pdf |
| _version_ | 1848783240137015296 |
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| author | Chan, Sok Gee Ramly, Zulkufly |
| author_facet | Chan, Sok Gee Ramly, Zulkufly |
| author_sort | Chan, Sok Gee |
| building | IIUM Repository |
| collection | Online Access |
| description | This study examines the impact of government spending efficiency on the economic growth of 115 countries with value-added tax (VAT) system. We seek to examine the moderating role of the VAT system and country governance in the relationship between public spending efficiency and the economic growth of a nation. The sample covers the period between 1984 and 2014. Using GMM estimation based on two-step estimate, we found (1) government spending efficiency enhances economic growth, (2) an efficient as well as transparent tax administration and higher tax revenue generated from the VAT system enhances the effect of an efficient government spending on the economic growth of a country and (3) the moderating role of the VAT system is further enhanced by the quality of democracy and legislative strength of the government. |
| first_indexed | 2025-11-14T16:18:12Z |
| format | Proceeding Paper |
| id | iium-48040 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:18:12Z |
| publishDate | 2015 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-480402016-09-20T06:37:34Z http://irep.iium.edu.my/48040/ Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance Chan, Sok Gee Ramly, Zulkufly HJ2240 Revenue. Taxation HJ7451 Expenditures. Government spending This study examines the impact of government spending efficiency on the economic growth of 115 countries with value-added tax (VAT) system. We seek to examine the moderating role of the VAT system and country governance in the relationship between public spending efficiency and the economic growth of a nation. The sample covers the period between 1984 and 2014. Using GMM estimation based on two-step estimate, we found (1) government spending efficiency enhances economic growth, (2) an efficient as well as transparent tax administration and higher tax revenue generated from the VAT system enhances the effect of an efficient government spending on the economic growth of a country and (3) the moderating role of the VAT system is further enhanced by the quality of democracy and legislative strength of the government. 2015 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/48040/1/Public_Spending_Efficiency_and_Economic_Growth.pdf application/pdf en http://irep.iium.edu.my/48040/2/EABM2015.pdf Chan, Sok Gee and Ramly, Zulkufly (2015) Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance. In: The International Conference on Economics, Accounting and Business Management (EABM 2015), 21st Nov. 2015, Hotal Bangi Putrajaya. (Unpublished) http://www.eabm2015.com/ |
| spellingShingle | HJ2240 Revenue. Taxation HJ7451 Expenditures. Government spending Chan, Sok Gee Ramly, Zulkufly Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance |
| title | Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance |
| title_full | Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance |
| title_fullStr | Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance |
| title_full_unstemmed | Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance |
| title_short | Public spending efficiency and economic growth: the moderating roles of value-added tax and country governance |
| title_sort | public spending efficiency and economic growth: the moderating roles of value-added tax and country governance |
| topic | HJ2240 Revenue. Taxation HJ7451 Expenditures. Government spending |
| url | http://irep.iium.edu.my/48040/ http://irep.iium.edu.my/48040/ http://irep.iium.edu.my/48040/1/Public_Spending_Efficiency_and_Economic_Growth.pdf http://irep.iium.edu.my/48040/2/EABM2015.pdf |