The impact of government spending on the economic growth of a sample of developing countries using panel data
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...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2021-12-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/1573.pdf
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| Summary: | 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. |
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| ISSN: | 1841-8678 1844-0029 |