Search

Recent evidence suggests that there might be an asymmetric process of adjustment towards the long-run equilibrium in the government revenue-spending nexus. In this paper, the long-run relationship between government revenue and spending is examined in the case of Thailand using annual data over the period 1991–2019. Specifically, this is an attempt to determine whether this long-run relationship is linear or nonlinear. In doing so, both linear and nonlinear cointegration tests are employed. The empirical results suggest that the positive long-run relationship between revenue and spending is linear and stable when revenue is the dependent variable. By estimating the TAR and MTAR models, evidence of a nonlinear revenue-spending relationship is not found. Therefore, there does not seem to be asymmetric adjustment toward the long-run equilibrium. The results of causality tests based on the estimated ECMs of linear cointegrating equations show no causality between revenue and spending in the short run, supporting the fiscal institutional separation hypothesis. In the long run, there is unidirectional causality running from government spending to revenue, which supports the fiscal spend-and-tax hypothesis. [ABSTRACT FROM AUTHOR]

This study reexamines the Feldstein-Horioka puzzle in selected Southeast Asian countries: Indonesia, the Philippines, and Thailand. The long-run equilibrium is estimated using the bounds testing procedure by Pesaran, Shin, and Smith (2001) while the causal relationship between savings and investment utilizes Granger non-causality test of Toda and Yamamoto (1995). The estimators from these two procedures do not seem to support a positive correlation between savings and investment in these three countries as found by Feldstein and Horioka (1980). [ABSTRACT FROM AUTHOR]

The main objective of this paper is to examine the relationship between energy use, exports, and imports in Thailand. The annual data from 1979 to 2012 are employed. The results from bounds testing for co-integration reveal that energy use is the main determinant of exports and imports. The results from short-run dynamics indicate that there is long-run causality running from energy use to exports and imports. Policy implication based upon the results of this study is that energy policy should be designed so as to generate sufficient energy for production in the exported and energy-intensive imported goods.However, trade and environmental problems should not be separable. [ABSTRACT FROM AUTHOR]