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The impact of government spending on the economic growth of a sample of developing countries using panel data

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  • Amine TAMMAR

    (University of Ali Lounici Blida 2, Algeria)

Abstract

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.

Suggested Citation

  • Amine TAMMAR, 2021. "The impact of government spending on the economic growth of a sample of developing countries using panel data," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(629), W), pages 169-178, Winter.
    • Handle: RePEc:agr:journl:v:4(629):y:2021:i:4(629):p:169-178
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    References listed on IDEAS

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    1. Jong Chan Lee & Yi Joong Won & Sang Young Jei, 2019. "Study of the Relationship between Government Expenditures and Economic Growth for China and Korea," Sustainability, MDPI, vol. 11(22), pages 1-11, November.
    2. Nyasha Sheilla & Odhiambo Nicholas M., 2019. "The Impact of Public Expenditure on Economic Growth: A Review of International Literature," Folia Oeconomica Stetinensia, Sciendo, vol. 19(2), pages 81-101, December.
    3. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    4. Cristian C. Popescu & Laura Diaconu (Maxim), 2021. "Government Spending and Economic Growth: A Cointegration Analysis on Romania," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
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