Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment.
A question of whether the government should intervene to correct for short-run fluctuations in economic activity has always been an interesting topic for economists. This paper investigates the impact of government expenditure on the economic growth in ASEAN-5 countries during 1980-2006 by using Po...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
IJRCM
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/30847/ http://psasir.upm.edu.my/id/eprint/30847/1/Government%20expenditure%20and%20economic%20growth%20in%20ASEAN.pdf |
| Summary: | A question of whether the government should intervene to correct for short-run fluctuations in economic activity has always been an interesting topic for
economists. This paper investigates the impact of government expenditure on the economic growth in ASEAN-5 countries during 1980-2006 by using Pooled
Mean Group. To examining both short run and long run effects, findings demonstrate that a large government expenditure influences the economic growth of
countries negatively. This negative impact may be a sign of the lower productivity of the capital input in ASEAN-5 economies with a large government
expenditure. |
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