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This study examines the role of government spending on tertiary education in promoting economic growth through knowledge creation and technology for panel data from 71 countries (1998-2014). This transmission channel is supported by Granger non-causality tests on high-income groups only. Both all panels (all countries) and upper-middle-income groups demonstrated direct causation from the government's support of tertiary education to economic growth and vice versa. Additionally, the lower-middle-income group acknowledged the importance of government spending on tertiary education to stimulate output via interaction between knowledge and technology. These findings remain feasible with the inclusion of the governance variable. This study adds new findings and offers relevant policy insights, especially in the era of a knowledge-based economy. [ABSTRACT FROM AUTHOR]

This paper compares multipliers of different categories of US federal government spending, and in doing so provides a new insight as to why fiscal multipliers may differ across countries and time. We identify exogenous federal government spending shocks at the state level for defense and non-defense spending. Using a projection-based approach, we estimate the cumulative multiplier due to shocks in either of these spending categories. Our results indicate that defense spending yields lower multipliers than non-defense spending. Thus, focusing only on defense spending may result in underestimating the multiplier for government spending. [ABSTRACT FROM AUTHOR]

Kamu harcamaları milli gelirin önemli bir bileşeni olup, ekonomik büyümeyi büyük oranda etkilemektedir. Kamu harcamalarının boyutu, bileşimi, zamanlaması ekonomik büyüme ve gelişmeyi etkilemesinin yanı sıra ekonomik sorunlarla mücadelede uygulanan ekonomi politikalarının da merkezinde yer almaktadır. Kamu harcamalarının ekonomik büyüme üzerindeki etkileri ile ilgili çok geniş bir literatür mevcuttur. Keynesyen görüş kamu harcamaları ile ekonomik büyüme arasında pozitif bir ilişki olduğunu savunurken, literatürde yer alan az sayıda bazı çalışmalarda ise kamu harcamalarının ekonomik büyümeyi negatif yönde etkilediği iddia edilmektedir. Bu çalışmanın amacı Türkiye’de kamu harcamalarının ekonomik büyüme üzerindeki etkisini, kamu harcamalarının türlerine göre analiz ederek, literatürdeki benzer çalışmalara katkı sağlamaktır. Bu amaçla, Türkiye’nin 1980-2017 dönemine ekonomik büyüme ve kamu harcama türlerine ait veriler kullanılmıştır. Covid-19 pandemisi nedeni ile ekonomide ortaya çıkan olumsuz tablonun analizi etkilememesi için, veri seti pandemi öncesini içerecek şekilde oluşturulmuştur. Bu doğrultuda değişkenler arasındaki ilişkinin testi için ARDL analizi kullanılmış olup, bulgulara göre Türkiye’de kamu harcamaları ile ekonomik büyüme arasında pozitif ve anlamlı bir ilişki olduğu tespit edilmiştir.

The main purpose of thе presented article is to outline the role of the education system in the formation of human capital, the development of which is a prerequisite for the economic growth of the country. The article carries out a study of the theory of human capital as a defining component that ensures the process of development and accumulation of human capital, on which, in turn, the competitiveness of the country and its place in the world environment depend. The importance of educational resources in the creation of human capital is disclosed. The role of investments in human capital, and, in particular, in the educational process, is revealed. The relationship between the level of education and the employee’s salary is characterized. The main directions of influence of human education on the economic growth of the country are distinguished. The article specifies some recommendations that will ensure guarantees of the preservation of the education sector as a factor in the formation of high-quality human capital of the country. Education is defined as a fundamental form of investment in human capital. Lifelong education provides conditions for the formation of a qualified young worker as an individual and a professional in the chosen direction of training and further work at any enterprise. The main task of education is to provide the country with high-quality human capital for effective economic growth. Education has a positive influence on the labor market not only because it increases the competitiveness of workers, but because it accumulates potentially unoccupied young people. It is emphasized that the development of education and training contributes to solving such important tasks of socioeconomic development as accelerating the pace of economic growth, mitigating inequality in the distribution of incomes, improving the quality of the national labor force, directly reducing unemployment and preventing it in the future.

The challenges of the digital economy are leading to radical changes in public governance, creating conditions for convenient and prompt access to public services and public information. Moreover, the pandemic has caused drastic changes in the use of digital public service – it has become a necessity. Ukraine has significant prerequisites for the development and effective transformation of public administration to a higher technological level. Furthermore, during the time of crisis (2013-2014, 2020-2021), the government priorities were shifted to support digital transformations to improve the effectiveness of public administration and ensure the sustainability of public finance. The purpose of the paper is to investigate and assess a correspondence between efficiency of governance and sustainability of public finance based on digital transformations under the Ukrainian approach. The main scientific question was: How does the active digital transformation in public governance affect the sustainability of public finance in Ukraine? Methodology. Seeking the solution, own methodological developments were used; correlation analysis of main indicators of government effectiveness and sustainability of public finance was estimated. To assess the impact of digitalization on public governance efficiency, Ukrainian governance practices over the past 13 years were analyzed, expressed by indicators of governance effectiveness, through the introduction of digital technologies. Results. Based on empirical research, it has been found that due to several limitations, a strong direct relationship between active digital transformation and the sustainability of public finances (debt security) has not been identified. But at the same time, significant progress has been made in efficiency of public governance through the implementation of costly but effective digital change. This correspondence is especially noticeable during the crisis caused by the pandemic (2020-2021), during which the involvement of citizens in digital services is very high. Practical implications and value/originality. The convergence of synergies between key aspects – public governance, digitalization, finance, and security – has great potential for relevant solutions that provide a broader view of sustainable development issues. It can be noted that this issue is extremely relevant for further research in the field of public administration and finance in the context of sustainable development of the digital economy.

The main purpose of this paper is to identify the impact of public spending on education and research and development (R&D) on the formation of gross domestic product (GDP) in nine Central European countries, which are divided into two clusters – "old" and "new" EU members. The study took into account official Eurostat data of both the EU and national statistical organizations for the period 2010–2019. The analysis of this impact was carried out using a system approach, statistics and econometric framework including panel data regression, Wald, Breusch-Pagan, Hausman tests. The main finding of the present study is the identification of additional income in terms of GDP in Euro per capita for selected countries, which is obtained from adequately spent public funds for education and R&D. Our results showed that the strongest influence of these expenditures for the "old" members was in Germany and Austria, and for the "new" – in Slovenia and Czechia. It is proved that this impact is different in individual countries and is determined by the public financial policy of national governments.

Exemplified by regions of the Russian Far East, the article presents a view on the current state and problems of managing regional public expenditures, including the focus of public expenditure on regional development. The research is based on the data from expenditure commitments registries in 2019. A major share of budget expenditures is “compulsory” (pre-determined) expenditures, which have limited flexibility and cannot be redirected to different purposes. Under these circumstances, the ability of regional governments to vary the direction of budget spending and finance self-initiated expenditure commitments—in other words, to independently manage the composition of expenditures—is kept to a minimum, which implies low autonomy in managing expenditures. Most of the Russian Far Eastern regions’ government expenditures are aimed at supporting the current volume and quality of public services. The share of developmental expenditures is higher in regions having more budget resources (Sakhalin Oblast), and significantly lower in regions of the northern Far East (Magadan Oblast, Kamchatka Krai, and Sakha Republic (Yakutia)), the latter having higher costs of supporting critical infrastructure under severe climate conditions. In the present situation, regional governments cannot be fully considered as key influencers managing the development of their territories, and only fill the role of executors and lobbying actors for acquiring financial support from the federal government. As a result, it is difficult to account for specific territorial circumstances and development potential, and the overall efficiency of government spending is decreased. In the authors’ opinion, the findings may be applicable to most regions in the Russian Federation.

The following study aims to study the impact of government spending on economic growth for the period (2005-2019) using panel data on a sample of (15) developing countries. The Pooled Mean Group Estimator (PMG) method was used to estimate the study model. The results of which showed in the short and long run the existence of a significant and direct relationship between government spending and economic growth in the countries under study. This is consistent with most of the previous studies and the Keynesian theory, which indicate that government spending is one of the components of effective aggregate demand, which is positively reflected on the gross domestic product through its ability to create new individual incomes, and thus a rise in the productivity and consumption of economic agents.

Indonesia is a maritime country that has huge potential in fisheries sector. The average of indonesian fisheries production and export volumes always increase every year. This study aims to analyze the effect of exchange rates, government spending, inflation, interest rates, and sanitation policies to Indonesia fishery export to the United States in 1989-2019. Data were obtained from the Indonesian Ministry of Finance, the World Bank, UN COMTRADE, and the Indonesian Ministry of Maritime Affairs and Fisheries. This study uses the Error Coerrection Model (ECM) method to examine the effect of the independent variables on the dependent variable in the long term and short term. This study explains that in the long-term, government spending and exchange rate have positive effect, and interest rates have negative effect on export. In short-term, government spending and exchange rate have positive effect on export. Inflation and sanitation policy do not affect export in the long-term or short-term, while interest rates in the short-term do not affect Indonesian fishery exports. Keywords: Exports, Government Spending, Exchange Rates, Non-Tariff Barriers, Error Correction Model. JEL: F10, F13, C32

ABSTRACT Using data of selected economies of Latin America for the period 1990-2017, this paper aims to provide empirical evidence regarding the effect of disaggregate government spending in the exchange rate. Our results indicate that government investment depreciates the exchange rate whereas government consumption, on the other hand, appreciates it. Both effects are, however, rather small. Our findings support recent literature showing that the relationship among government spending and the exchange rate is ambiguous, challenging the general accepted idea that government spending inevitably appreciates the exchange rate, having thus negative effects on the tradable sector and on growth. Overall, our results allow us to suggest that growth can be stimulated particularly via government investment without detrimental effects on the exchange rate.

The research objectives are to (1) measure the efficiency of local governments in every province in Indonesia and (2) analyse the impact of regional splitting, GRDP per capita, population density, and fiscal capacity on the efficiency of local governments. This study employed per capita personnel spending, per capita spending on goods and services, and per capita capital spending. The output used in the dataset is the human development index. The first objective (local government efficiency) is measured by Data Envelopment Analysis (DEA), with VRS and an output-oriented model. DMUs are 34 provinces from 2013-to 2018. The second objective (the impact of regional splitting, GRDP per capita, population density, and fiscal capacity on efficiency) is measured by panel data regression with a random effect model. Results show that the always efficient provinces for 2013-2018 were Jakarta, Yogyakarta, and Banten. The study revealed 29 inefficient provinces in 2013, and this number increased to 31 inefficient provinces in 2018. Another finding is that regional splitting, GRDP per capita, population density, and fiscal capacity significantly impact local governments' efficiency. As inefficient provinces need to improve their efficiency, this study recommends that local governments focus on these four independent variables to strengthen their efficiency.

The properly and optimized the facilities and credit can lead to increased investment, production, employment and economic growth. In addition, budgetary credits as financial policy plays an important role in economic growth. The purpose of this paper was to investigate the relationship between government budget credits and bank credits based on financial and monetary policy on economic growth and distribution of revenue in the country's provinces. In this regard, the credits allocated to different provinces have been evaluated based on the monetary and financial policy. To analyze this relationship, statistical information from 2000-2019 and panel autoregressive methods were used. The results of the impulse from the budget credits had a positive effect on the economic growth of the provinces. It has also led to a more inappropriate distribution of income in the country's provinces. The effects of monetary policy on economic growth variables and revenue distribution have been such as government spending, but the intensity of monetary policy has been greater than financial policy. The results of the impulse from the budget credits had a positive effect on the economic growth of the provinces. It has also led to a more inappropriate distribution of income in the country's provinces. The effects of monetary policy on economic growth variables and revenue distribution have been such as government spending, but the intensity of monetary policy has been greater than financial policy.The results of the impulse from the budget credits had a positive effect on the economic growth of the provinces. It has also led to a more inappropriate distribution of income in the country's provinces. The effects of monetary policy on economic growth variables and revenue distribution have been such as government spending, but the intensity of monetary policy has been greater than financial policy.

This paper reconstructs the Keynesian income—expenditure (IE) model to include distinctions between government purchases of private sector output, government production, and government job guarantee program (JGP) employment. Analytically, including those distinctions transforms the model from a single sector model into a multi-sector model. It also surfaces the logic behind the automatic stabilizer property of JGP employment. The model is then extended to include Kaleckian income distribution effects which contribute to explaining why expenditure multipliers vary by type of fiscal expenditure. The Kaleckian version generates a new balanced budget multiplier driven by changed composition of government spending. It also illuminates some macroeconomic implications of privatization of government produced services. [ABSTRACT FROM AUTHOR]

Since its independence, the Algerian economy has dealt with many crises, especially those related to the global oil markets, which are witnessing severe fluctuations, and since Algeria is a rentier economy these crises have threaten its fiscal policy in the last four decades. In such cases, policymakers have to think wisely about any possible negative effects that may impact the economy through fixing the issue of the adjustment to both spending and revenues. Previous literature assumes a symmetric linkage between government spending and revenue. However, a variation on public revenue does not necessarily have the same impact on public expenditure, or vice-versa. Considering this possible asymmetry between the variables, the main purpose of this study is to examine the asymmetric relationship between government expenditures and revenues in Algeria over the period 1970-2018, and to confirm one of the four hypotheses linked to the tax-spend debate. To characterize asymmetry, this study uses the nonlinear autoregressive distributed lags (NARDL) approach of cointegration developed by Shin et al (2014) between these two variables in the adjustment process of the budgetary. Furthermore, we applied the asymmetric causality approach test using bootstrap simulations with leverage adjustments popularized by Hatemi-J, 2012; Hacker and Hatemi-J, 2012 to determine the causal relationship between variables. The findings provide evidence that suggests that there is a long-run relationship between government expenditures and revenues. To put it differently, in the long run, positives changes in revenue dominate the response of government expenditure. The same applies to the response of spending since positive changes in government expenditure are greater than negative changes. Asymmetric causality results supported a bidirectional causality pattern between public expenditures and revenues in Algeria, thus it supports the fiscal synchronization hypothesis in Algeria. The results of the research are important to increase interest in fiscal policy in Algeria, where under this hypothesis, the fiscal authorities of Algeria must try to raise revenues and work to rationalize public spending simultaneously to control the budget deficit. [ABSTRACT FROM AUTHOR]

The purpose of this study is to determine the factors that have the potential to increase inequality in Indonesia. Inequality can be caused by economic and social factors, including unequal economic potential and activity, quality of human resources (measured by Human Development Index or HDI), population, investment, workforce, and government spending. Using panel data econometrics and taking advantage of the availability of macro data at the provincial level, the researcher investigates the factors that significantly influence inequality in 2010-2017 and proposes the economic and social factors need to improve in the near future. The results show that Gross Regional Domestic Product as a representation of the potential and magnitude of economic activity at Provincial Level has a significant positive influence, as well as the variables of government spending and Labor Force Participation Rate. Meanwhile, HDI and population as social factors have a significant negative effect on income inequality. The results of the individual effect show that the provinces that have the smallest individual values in reducing the Gini Ratio are the Provinces of West Papua and the Bangka Belitung Islands. Meanwhile, the provinces that have the greatest influence in increasing the Gini ratio are West Java, DI Yogyakarta, and Banten. [ABSTRACT FROM AUTHOR]

Controlling for monetary policy, government transfers are potentially inflationary. This, however, may not be true when the economy is demand-constrained. Using panel data of 17 Indian states over 30 years, we show that government transfers via welfare programs do not lead to inflation. For identification, we use a narrative shock series of transfer spending based on the introduction of new welfare programs. We re-examine the relationship between government transfers and inflation by studying whether the recent implementation of India's public workfare program, NREGA, had aggregate price effects. Using the phase-wise implementation design of the program, we confirm the absence of any association between higher program coverage and price inflation. [ABSTRACT FROM AUTHOR]

Copyright of Muthanna Journal of Administrative & Economics Sciences is the property of Muthanna Journal of Administrative & Economics Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Theory of political business cycles in democratic systems indicates that politicians have an incentive to operate with different economic instruments to acquire voters or secure re-election. Such phenomena also take place on the local government level, with incumbents manipulating the scale of expenditures, investments, or the amount of debt raised before elections. In this article, we focus on the analysis of local government investment as it is one of the most flexible parts of the budget so there is a strong incentive to use it as an election support instrument. Based on the panel data for the three full electoral cycles in Poland, we check the existence of the relationship between investment budget sizes and the phase of the electoral cycle. The results of the analysis show that even as a single explanatory variable, the election cycle is a significant factor explaining the behaviour of local public investments. It causes fluctuations of local investments by over 20% around their average level. This confirms the existence of a strong political budget cycle in Polish local governments. As this also provides evidence of political rent seeking, our findings provide a general rationale for limiting the number of office terms for incumbents in local authorities. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economic Administrative & Legal Sciences is the property of Arab Journal of Sciences & Research Publishing (AJSRP) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Economic Administrative & Legal Sciences is the property of Arab Journal of Sciences & Research Publishing (AJSRP) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Afyon Kocatepe University Journal of Social Sciences / Afyon Kocatepe Üniversitesi Sosyal Bilimler Dergisi is the property of Afyon Kocatepe University (AKU) Sosyal Bilimler Enstitusu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Stable Economy Journal is the property of University of Sistan & Baluchestan and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study examines the impact of government spending on the finance-growth nexus in 27 post-communist economies from 1995 to 2017 using dynamic panel estimators. Many transitional economies have attempted to reduce the influence of government intervention during their early transitional period while reforming their respective financial sectors. The findings show that overall financial development is positive to growth, while government spending has a negative impact on growth. More importantly, the marginal effects of financial development are positive to growth at low levels of government spending. In contrast, at high levels of government spending, financial development has a negative relationship to growth. Focusing on different aspects of financial development, the findings show that financial access and efficiency are more effective at stimulating growth compared to financial depth. Post-communist economies should ensure that government spending should not crowd out the financial sector, and promote financial efficiency and accessibility. [ABSTRACT FROM AUTHOR]

The past two years, the significant deterioration of the global economic environment and the decline in external demand caused by the health crisis affected the activity of domestic export companies and industrial production, remittances and foreign direct investment. Restrictive measures to prevent the spread of coronavirus in the country have affected some of the activities within the service sector, such as trade, transport, hospitality and tourism. As a result of all this, the domestic economy faced one of the deepest recessions so far. The effects of the pandemic on the labour market have been limited, due to government measures to mitigate its effects on jobs. The crisis caused by the pandemic with similar negative consequences hit the European economy, so that economic activity in the EU fell by 14% in the second quarter in 2020, while Germany, as the largest economy within the EU and our most important trading partner fell by 11.3 %. The past two years, the significant deterioration of the global economic environment and the decline in external demand caused by the health crisis affected the activity of domestic export companies and industrial production, remittances and foreign direct investment. Restrictive measures to prevent the spread of coronavirus in the country have affected some of the activities within the service sector, such as trade, transport, hospitality and tourism. As a result of all this, the domestic economy faced one of the deepest recessions so far. The effects of the pandemic on the labour market have been limited, due to government measures to mitigate its effects on jobs. The crisis caused by the pandemic with similar negative consequences hit the European economy, so that economic activity in the EU fell by 14% in the second quarter in 2020, while Germany, as the largest economy within the EU and our most important trading partner fell by 11.3 %. The health crisis has given new emphasis to the sustainability of public finances over the past two years and strongly emphasized the need to balance between short-term stabilization goals and long-term fiscal sustainability. This situation imposed the need for an expansionary fiscal policy in order to support the economy in a pandemic that led to a rapid increase in the budget deficit and public debt. This imposes the need for rationalization of public expenditures, as well as measuring the results of their realization in order to increase the efficiency of public expenditure and achieve fiscal sustainability in the medium term. The analysis is made on the basis of historical data on planned and realized budget revenues and expenditures for the period from 2015 to 2021, in order to see the size and trend of their movement in order to take measures for fiscal consolidation and ensure sustainability of public finances. The research aim is in order to see the size and trend of planned and realized budget revenues and expenditures movement in order to take measures for fiscal consolidation and ensure sustainability of public finances. The main research problem is planned and realized budget revenues and expenditures and its position to deal with the health crises in the Republic of North Macedonia. The research subject is focused on the data reports from the Ministry of Finance of North Macedonia. The data analysis was accomplished using STATA 16 statistical software for data science. [ABSTRACT FROM AUTHOR]

Once at the epicenter of the original source of the coronavirus spread, the governments of China, the Republic of Korea and Japan introduced immediate administrative measures to isolate the population, which helped to effectively contain the spread of COVID-19 on their territory. The review shows that in the first half of 2020, due to policy of isolation in these Northeast Asia countries, there was a contraction of their economies. The subsequent dynamics of economic growth of the three Northeast Asia countries indicated structural differences in their economies. In the face of economic recession during a COVID-19 pandemic, the governments of Northeast Asia countries are applying stimulating economic policies, with Japan having the largest public spending with respect to its GDP, followed by the Republic of Korea and China. In China, the support for the economy is focused on fiscal policy measures, in the Republic of Korea – monetary and macro-financial policies, in Japan – a combination of policies’ various measures. In the context of a decrease in the coronavirus spread, mid-term estimates indicate that these three countries will be able to maintain positive economic growth rates while investment supporting of the green and digital technologies, including the support through the measures of economic policy. These support measures could have a short- and medium-term positive impact on the economies of the three Northeast Asia countries. However, for the purpose to localizing the pandemic in these countries large fiscal expenditures will contribute to the further growth of their public debt, thereby reducing the national savings rate, restraining the dynamics of their economic growth in the long term

The paper analyses selected determinants of social spending in the eurozone countries. The sample includes 17 eurozone countries (euro area countries except for Malta and Slovenia) analysed over the time sample, which covers annual data between 1996 and 2017. The paper takes into account three categories of social spending: aggregated welfare spending, aggregated social protection spending, and spending on social protection benefits, and evaluates the statistical and quantitative effects of their selected determinants. The set of determinants includes general macroeconomic variables related to the condition of the economy and selected demographic factors. The analysis is based on panel data. The obtained results point out the effects of macroeconomic factors on social-type spending and the effects of old-age dependency ratio on spending, whereas the significance of the rest of the analysed demographic factors is generally ambiguous and depends on the type of spending under consideration, applied approach, specification, as well as the control variables used in the analysis.

This paper analyzes the relationship between final consumption and government spending, using the correlation and linear regression model. The objective of the research is whether government expenditures are complementary, substitute, or not related to private consumption to give positive effects on the economy. Methodology, quantitative secondary data were obtained from the World Bank, for five countries and processed with SPSS, 21. The empirical analysis was verified through, Bivariate and Partial correlation and normality test. The Result, first, shows that government spending complements and replaces final consumption. Second, it is also confirmed that even when interacting with other variables, the complementary effect of final consumption is not eliminated despite the shocks coming from government spending. Third, by adding other variables to the model, the issue of complementarity and substitutability of the two main variables is not lost. As a result, findings, confirm that private consumption (InCt) and government spending (InGt), Gross Savings (GS), and per capita income (GDPpc), are in statistically significant and positive relationships with each other. The novelty of the paper is, government expenditures cause an increase in private consumption is to high value, showing the complementary effect of government expenditures on private consumption. Based on health expenditures, education, public order, internet provided by the state have increased the demand of families for these services, causing an increase in the share of services provided by the private sector. JEL Classification: E21; H5; E2; R0. Doi: 10.28991/esj-2021-01292 Full Text: PDF

Quality institutions augment economic sustainability by ensuring domestic resource optimization with equitable development principles. Therefore, ensuring this equitable development and quality institutions is required. This study assessed the effects of government debt, uncertainty of economic policies, and government spending on institutional quality, as measured by governmental effectiveness in BRIC (Brazil, Russia, India, and China) nations from1990–2020. This study applied several econometrical techniques for empirical nexus assessment, including Augmented ARDL, nonlinear Autoregressive Distributed Lagged (ARDL), and Fourier Toda-Yamamoto causality tests. This study documented long-run cointegration in both symmetry and asymmetric assessments. In the long run, both government debt and uncertain economic policies were significantly negatively associated with institutional quality, while government spending and institutional quality were positively associated. Furthermore, the results of asymmetric ARDL revealed both long- and short-run asymmetric relationships between institutional quality and government debt, EPU, and government spending. The directional causality test documented bidirectional causality between debt and institutional quality in all nations, whereas mixed causalities were detected for uncertain economic policy, institutional quality, and government spending. Regarding policy, the results of this study suggested that economic stability was indispensable for efficient institutional quality in BRIC nations.

In recent years, to address the sluggish domestic demand caused by the epidemic, consumption has declined. The General Office of the State Council has introduced a series of policy measures around the improvement and development of the housing rental market. The paper empirically investigates the influence mechanism of the development of the housing rental market on residents’ consumption using relevant data from the 2010–2019 City Statistical Yearbook and the Xi Tai database. It is found that the increase in the scale of housing rentals significantly raises the level of residents’ consumption. Specifically, the increase in the scale of housing rentals can increase government expenditure, firm up residents’ consumption confidence, and thus raise residents’ consumption level; urban labor inflow plays a negative moderating role in the development of the housing rental market to promote residents’ consumption level. The heterogeneity study shows that the improvement and development of the housing rental market in the eastern coastal region has a more significant role in promoting residents’ consumption level, while it is not significant for residents’ consumption level in the central and western regions. The study suggests that to release the vitality of residents’ consumption, government spending should be increased, the impact of inflowing labor on the labor market should be reduced, and the development of the housing rental market should be improved and nurtured.

Copyright of Journal of Economic Administrative & Legal Sciences is the property of Arab Journal of Sciences & Research Publishing (AJSRP) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In general, many factors, including government spending, influence economic growth. In many theoretical and empirical studies, government spending is seen from the ratio between government spending and Gross Domestic Product (GDP) or government size. This research aims to examine the influence of government size on economic growth in districts/cities of South Sumatra Province. The government size to be analyzed is the amount of government spending on public services, housing and public facilities, education, and health. The data used in this study is secondary data for the 2010-2020 and covers 15 regencies/cities. The data was obtained from the Central Statistics Agency and the Regional Financial and Asset Management Agency. The analytical technique used in this research is descriptive analysis technique and quantitative analysis. Klassen Typology Approach was used to identify the regencies/cities with fast growth and the relatively lagging regencies/cities of South Sumatra Province. The study results show that government spending on public services and health has a positive and significant effect on economic growth. Meanwhile, the government spending on housing and public facilities has a positive and insignificant effect. In contrast, the government spending on education has a negative and significant impact on economic growth. This study recommends local governments increase the allocation of regional expenditure to sectors that lead to economic growth, especially in newly created regions. [ABSTRACT FROM AUTHOR]

In this study, we highlight the influence of the federal system on the development expenditure of the states, which is crucial for socio‐economic development. First, we examine whether there is a convergence in development expenditure across Malaysian states. Second, we investigate the importance of decentralization in affecting the pattern of development expenditure in the short‐term and in the long‐term. The convergence analysis utilizes annual growth data from 2000 through 2015 for the short‐term and the averages of 3‐ and 5‐year growth for the long‐term. In this study, we employ the panel data approaches of pooled OLS, fixed effects and random effects estimation procedures. The findings provide empirical evidence of the convergence of development expenditure across the states in Malaysia in both the short‐term and the long‐term. Generally, all fiscal decentralization indicators (state per capita revenue, state own‐source per capita revenue, state own‐source revenue as a share of total revenue and inter‐state fiscal capacity) are imperative in influencing the fiscal behaviour of state governments in Malaysia. These indicators, as well as assistance from the federal government in the form of transfer payment, are very much needed to strengthen the expenditure capacity of the Malaysian states. [ABSTRACT FROM AUTHOR]

According to standard theoretical frameworks such as Real Business Cycle (RBC's) models or new-Keynesian theories, the real exchange rate should appreciate in response to an increase in government spending. However, the empirical literature finds mixed results. We offer an answer to this puzzle by analyzing the impact of the composition of the fiscal deficit. Using a dynamic stochastic general equilibrium model with a government and an external sector, we quantify the differential impact on the real exchange rate generated by an increase in public consumption expenditure, public investment, and tax reduction. We calibrate and simulate the model for Argentina and find that the fiscal deficit originated in tax reduction can improve the real exchange rate. In contrast, one generated by an increase in spending deteriorates the real exchange rate. In particular, this depreciation is more significant when the spending is directed toward public consumption than when used for public investment. We argue that quantifying these different effects on the exchange rate within a dynamic stochastic general equilibrium framework is an essential exercise of political economy for highly dollarized emerging economies that exhibit higher inflation pass-through. [ABSTRACT FROM AUTHOR]

A fundamental aspect of China's transition to a market economy is the change in fiscal decentralization marked by the tax reform in 1993. This paper examines the effect of revenue and expenditure decentralization and their divergences on fiscal spending multipliers in China using nationally aggregate and provincial-level data from 1978 to 2017. Our investigations show that expenditure decentralization weakens the efficacy of spending policies, while revenue decentralization enhances the efficacy. Moreover, the divergence of revenue and expenditure decentralization has significantly decreased the provincial spending multiplier, while its effect on the aggregate spending multiplier is insignificant. The provincial results are robust to the inclusion of off-budgetary expenditure and revenue, using different estimates of multipliers and different measures of fiscal decentralization, considering from a long-run perspective, and addressing the endogeneity issue. [ABSTRACT FROM AUTHOR]

This paper studies the dynamic effects of the fiscal policy shock on private activity using an array of vector autoregressive models for the post-war U.S. data. We are particularly interested in the role of consumer sentiment in the transmission of fiscal stimulus. Our major findings are as follows. Private spending fails to rise persistently in response to government spending shocks, while they exhibit persistent and significant increases when the sentiment shock occurs. Employing not only linear but also nonlinear state-dependent VAR model estimations, we show that the government spending shock generates consumer pessimism in all phases of business cycle resulting in subsequent decreases in private activity, which ultimately weakens the effectiveness of the fiscal policy. Our counterfactual simulation exercises confirm the important role of sentiment in propagating fiscal stimulus to private spending. [ABSTRACT FROM AUTHOR]

The government size in developed economies expanded remarkably after the Second World War. This growth shaped the role of the government as a key player in the economic activity and the aggregate dynamics of a country. However, the way in which the government is represented in DSGE models is often reductive, containing homogeneous public spending and a few distortionary taxes without clear counterparts in fiscal data. This paper shows how dynamic general equilibrium models can incorporate a detailed government sector as defined in the System of National Accounts (SNA). This government features six types of public expenditures (i.e. the government's intermediate consumption, public wage bill, debt service, public investment, and transfers to households both in-kind and other-than-in-kind), and five distortionary taxes (i.e. consumption tax, capital and labor income taxes, corporate tax and social contributions). [ABSTRACT FROM AUTHOR]

Gender equality is directly related to the goals of improving the status of women and eliminating existing socioeconomic disparities and discriminatory practices based on gender. The aim is to provide women with greater access to public resources, which can be achieved via the application of gender budgeting. The article considers existing government spending legislation and proposes ways of incorporating gender into budget planning, including specific methodology for creating a gender-oriented budget as promoted by the United Nations. We outline eight steps for creating a gender budget that would define, analyze, and incorporate the gender component into budgetary spending on social policy. Such a budget would help women acquire better high-paying jobs through the reform of hiring practices, education, and the expansion of child care services. [ABSTRACT FROM AUTHOR]

Purpose: High growth is expected to overcome various economic problems. Therefore, various efforts have been made by the government in synergy with other related institutions as a form of optimization of economic growth. That is why economic growth is an important indicator for the development of a country. This study aims to analyze economic growth and the factors that influence economic growth in Asia during the 2000-2019 period using dynamic panels. Design/methodology/approach: The independent variables in this study are the human development index (HDI), changes in exports (PEXPORT) and government spending (EXPENGOV) using the GMM system method as a model for modeling economic growth. The GMM model system is the best model with Sargan testing. The data used in this study are in the scope of Asia with the number of observational studies that are 11 (eleven) with a total panel data turned on by the state observation system 209. Findings: The results show that the human development index (HDI) has a negative and significant effect on economic growth in Asia 2000-2019 period. Meanwhile, the export change variable (PEXPORT) and government expenditure (EXPENGOV) had a positive and significant effect on economic growth in Asia for the 2000-2019 period. Research limitations/implications: Furthermore, economic growth also strengthened the previous year's economic growth at a significance level of 1%. This shows that economic growth is economic growth, economy, economy, and state government spending. Originality/value: This paper is an original Paper type: Research paper

This study aims to test the hypothesis that explains the relationship between tax revenue and government spending in six Indonesian regions. Furthermore, the units of analysis were districts and cities in each region from 2006 to 2017, and a Granger panel causality approach was used. The results showed five experienced bidirectional causalities between tax revenues and local government spending out of the six regions, namely Java, Sumatra, Kalimantan, Sulawesi, and the Bali & Nusa Tenggara. Also, there was fiscal synchronisation in five regions, while the tax-spend hypothesis applies in the Papua & Maluku regions. Therefore, the local governments in these regions need to be careful in deciding actions related to increasing revenue. This can be achieved through the tax sector's optimisation and expenditure increment by encouraging public spending from the administration.

Sexist attitudes influence a wide range of political behaviors, including support for explicitly gendered policies like gender quotas. But we know much less about how sexism might broadly shape policy preferences. We argue that some policy domains are implicitly associated with being pro-women or pro-men because of gender socialization, gender segregation in the workforce, and differences in policy preferences in the general population and among political elites. As (hostile) sexists view women as inherently undeserving, making illegitimate claims on government, and getting ahead at the expense of men, we hypothesize that they will oppose policies associated with women, while supporting “male” policies such as defense and law enforcement. We test our hypothesis using the 2019 Australian Election Study and 2018 US Cooperative Congressional Study. We find similar patterns of policy preferences, wherein those holding sexist attitudes (net of other attitudes and demographic characteristics) want to cut funding for pro-women policies like social services, education, and health, while they approve of increased funding for law enforcement and defense.

The aim of this paper was to investigate the influence of an increase in government healthcare expenditures on regional economic growth in Russia. Studies have shown that an increase in healthcare expenditures stimulate an increase in GDP through several channels. Firstly, it improves the quality of labor force, which can lead to an increase in labor productivity. Secondly, an increase in productivity and size of labor force lead to consumption expansion and then to firms’ income growth, so there is a multiplication effect. Including the assumption that the relationship between healthcare expenditure and economic growth may be non-linear we formed the hypothesis of the existence of the average optimal share of healthcare expenditure in GRP that maximizes average regional economic growth rate. In this research it was suggested that an increase in healthcare expenditures besides the direct effect on economic growth of a particular region also affects economic growth of neighboring regions. The possible explanation of this is the positive impact of healthcare services received in the neighboring regions on nearby territories, joint national healthcare projects, and distribution of scientific knowledge. Using the spatial Durbin model focusing on regional data of 2005–2017, it was shown that the average optimal share of healthcare expenditures equals to 5,9% of GRP with an inclusion of spatial effects and 7,6% without them, outlining the importance of including interconnection variables between Russian regions into the model. The regional statistics analysis showed the failure to reach the recommended share by most Russian regions, which can be viewed as a possibility for economic growth stimulation in case of the increase in governmental spending on healthcare in the future

The study of government expenditure is essential for economists and policymakers. This study aims to analyze the impact of various government spending, mainly on education, health, and military, on the effect of welfare on Asian Countries. This study was conducted in 20 Asian countries constructed on panel data from 2013–2017 and is analyzed using the fixed effect general least square (FEGLS) method. The results show that, government spending in health, military, and education had a positive and significant effect on Asian Countries' welfare. This research concludes that, the government health expenditure had the highest impact on welfare, followed by education and military spending.

The main purpose of this study is to simulate the long-term economic effects of government size on the economy and its expenditures combination based on Iran's budget structure over the next 20 years using the dynamic system of scenarios. In the first scenario, the increase in government size and the combination of government spending in the economy show that with the increase in government size, although the private sector investment trend is increasing in the short run, its level shifts and decreases from the previous path, and in the long run the private sector investment has declined; Furthermore, since government spends most of its revenue on running costs, production does not grow much in the long run as government size increases. In the second scenario, with the increase of the government's construction share of the total budget of the country, its short-term and long-term effects are systematically estimated. The results show that as the government's development share of the total budget increases, although private sector investment will increase more rapidly in the short term, in the long run the amount of private sector investment affected by other economic factors are declining, although GDP and national income are also increasing in the long run. Therefore, in order to increase production in the economy of Iran, economic development policymakers must effectively and efficiently increase public participation in the economy and reduce government size, by channeling the country's revenues and revenue sources in the development of infrastructure, technology, and production in the short term.