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...

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Main Authors: Rajabi, Ehsan, Muhammad, Junaina
Format: Article
Language:English
Published: IJRCM 2013
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
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author Rajabi, Ehsan
Muhammad, Junaina
author_facet Rajabi, Ehsan
Muhammad, Junaina
author_sort Rajabi, Ehsan
building UPM Institutional Repository
collection Online Access
description 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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spelling upm-308472015-10-30T02:44:08Z http://psasir.upm.edu.my/id/eprint/30847/ Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment. Rajabi, Ehsan Muhammad, Junaina 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. IJRCM 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30847/1/Government%20expenditure%20and%20economic%20growth%20in%20ASEAN.pdf Rajabi, Ehsan and Muhammad, Junaina (2013) Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment. International Journal of Research in Commerce, Economics and Management, 3 (7). pp. 85-89. ISSN 2231-4245
spellingShingle Rajabi, Ehsan
Muhammad, Junaina
Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment.
title Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment.
title_full Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment.
title_fullStr Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment.
title_full_unstemmed Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment.
title_short Government expenditure and economic growth in ASEAN-5: long -run tendencies and short-term adjustment.
title_sort government expenditure and economic growth in asean-5: long -run tendencies and short-term adjustment.
url 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