The Impact of Public Expenditure Components on Economic Growth in Pakistan
Journal Title: European Online Journal of Natural and Social Sciences - Year 2017, Vol 6, Issue 3
Abstract
This study examines the relationship between health expenditure, expenditure on education, Gross Fixed Capital Formation, Military Expenditure, Fiscal Balance (Deficit) and economic growth in Pakistan. The period of study is from 1972 to 2015. ARDL Bounds Testing approach for co-integration and ECM Technique were applied to study the long run and short run relationship among the above mentioned variables. “Granger Causality Test” was applied to find out the direction of causality. The results reveal a long run relationship between Military Expenditure, Gross Fixed Capital Formation, Fiscal Balance and Economic Growth. The results of “ECM” show the short run relationship among these variables. However, there is no long run relationship between Health Expenditure, Expenditure on Education and Economic Growth. The speed of adjustment is high which 62.28% is. “Granger Causality” test reveals that “causality runs from Military Expenditure to Economic Growth”. It further reveals causality from health expenditure to fiscal balance and from fiscal balance to Military Expenditure. It is concluded that fiscal policy has an important role in boosting economic growth.
Authors and Affiliations
Muhammad Ijaz Hussain, Tasneem Zafar
Keywords
Related Articles
- EP ID EP329762
- DOI -
- Views 113
- Downloads 0
Identifying and Prioritizing the Factors Relating to Tehran's Medical Tourism
The purpose of this study is to identify and prioritize the significant factors relating to Tehran's medical tourism. The study has employed the descriptive research as its research type. The population of this study con...
Qamar.zaman303@hotmail.com
This research investigated the development of the agricultural market of the Republic of Kazakhstan in EAEU conditions. It was noted that the special importance of the agricultural sector for the stimulation of investmen...
Trends in the Development of Fiscal Authorities of Kazakhstan
The paper examines the significance of efficiency of interaction between taxpayers and state authorities in the Republic of Kazakhstan, which depends on the optimization of business processes and successful implementatio...
Lighting Influence on Stress Level of Iranian Staffs (Case study: Central Organization of Farhangian University in Tehran, Iran)
A person's work environment is very important. We spend nearly as much time at work as we do at home and even for some office workers, they spend more at their office than home. Improper office environments can cause maj...
Investigating the Factors Influencing RFID Adoption Intentions of Retailers: Evidences from Lahore-Pakistan
Although there have been many articles emphasizing the common remunerations of the RFID implementation in the supply chain but the progression of instigating the equipment for the administration tenacity is somewhat on...