The Relationship between Government Expenditures and Economic Growth in Thailand

Jiranyakul, Komain and Brahmasrene, Tantatape (2007): The Relationship between Government Expenditures and Economic Growth in Thailand.

Abstract

The notion that more government expenditures can stimulate growth is controversial. The causation between government expenditures and economic growth in Thailand was examined using the Granger causality test. There was no cointegration between government expenditures and economic growth. A unidirectional causality from government expenditures to economic growth existed. However, the causality from economic growth to government expenditures was not observed. Further more, estimation results from the ordinary least square confirmed the strong positive impact of government spending on economic growth during the period of investigation.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic growth, Government expenditures, Granger causality test, Least Square Estimation
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N15 - Asia including Middle East; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O23 - Fiscal and Monetary Policy in Development

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