Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis
The paper aims at examining the causal relationship between economic growth and government expenditure in selected MENA countries over the period of 1987–2017. Unlike previous studies, we examine the causality in both panel data and time series data to get a clear idea about the causal relationships...
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| Format: | Article |
| Language: | English |
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Sciendo
2020-01-01
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| Series: | Economics and Business |
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| Online Access: | https://doi.org/10.2478/eb-2020-0005 |
| _version_ | 1797970982826147840 |
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| author | Ayad Hicham |
| author_facet | Ayad Hicham |
| author_sort | Ayad Hicham |
| collection | DOAJ |
| description | The paper aims at examining the causal relationship between economic growth and government expenditure in selected MENA countries over the period of 1987–2017. Unlike previous studies, we examine the causality in both panel data and time series data to get a clear idea about the causal relationships individually and as a full sample. We also revisited the causal relationship between the two variables within the framework of frequency domain causality. Our findings support the neutrality hypotheses in the short-run term for most of the countries. Thus, economic growth and government expenditure at most frequency levels evolve independently. On the other hand, we found the support of Wagner’s law, Keynes view, neutrality and bidirectional hypotheses in the long term. |
| first_indexed | 2024-04-11T03:25:31Z |
| format | Article |
| id | doaj.art-29805c60d2d945eeb34186323eff27df |
| institution | Directory Open Access Journal |
| issn | 1407-7337 2256-0394 |
| language | English |
| last_indexed | 2024-04-11T03:25:31Z |
| publishDate | 2020-01-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Economics and Business |
| spelling | doaj.art-29805c60d2d945eeb34186323eff27df2023-01-02T07:32:43ZengSciendoEconomics and Business1407-73372256-03942020-01-01341607710.2478/eb-2020-0005eb-2020-0005Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality AnalysisAyad Hicham0University Center of Maghnia,Tlemcen, AlgeriaThe paper aims at examining the causal relationship between economic growth and government expenditure in selected MENA countries over the period of 1987–2017. Unlike previous studies, we examine the causality in both panel data and time series data to get a clear idea about the causal relationships individually and as a full sample. We also revisited the causal relationship between the two variables within the framework of frequency domain causality. Our findings support the neutrality hypotheses in the short-run term for most of the countries. Thus, economic growth and government expenditure at most frequency levels evolve independently. On the other hand, we found the support of Wagner’s law, Keynes view, neutrality and bidirectional hypotheses in the long term.https://doi.org/10.2478/eb-2020-0005economic growthgovernment expenditurefrequency domain spectral causalitywagner’s lawmena countriesc10h50o10 |
| spellingShingle | Ayad Hicham Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis Economics and Business economic growth government expenditure frequency domain spectral causality wagner’s law mena countries c10 h50 o10 |
| title | Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis |
| title_full | Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis |
| title_fullStr | Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis |
| title_full_unstemmed | Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis |
| title_short | Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis |
| title_sort | government expenditure and economic growth nexus in mena countries frequency domain spectral causality analysis |
| topic | economic growth government expenditure frequency domain spectral causality wagner’s law mena countries c10 h50 o10 |
| url | https://doi.org/10.2478/eb-2020-0005 |
| work_keys_str_mv | AT ayadhicham governmentexpenditureandeconomicgrowthnexusinmenacountriesfrequencydomainspectralcausalityanalysis |