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Public Spending and Economic Growth in the Rentier State: The Case of Kuwait

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  • Ebrahim Merza
  • Noorah Alhasan

Abstract

This paper examines the validity of Wagner’s hypothesis in Kuwait looking specifically at government expenditures in health, education and infrastructure. Using time series analysis, the paper has found a long-run equilibrium relationship between GDP growth and the specified government expenditures. It, however, only found one causal relationship between development expenditures and GDP growth. As such, the paper proposes an expansion in government spending on development projects and reevaluates budget allocation in health and education.

Suggested Citation

  • Ebrahim Merza & Noorah Alhasan, 2016. "Public Spending and Economic Growth in the Rentier State: The Case of Kuwait," Asian Social Science, Canadian Center of Science and Education, vol. 12(8), pages 160-160, August.
    • Handle: RePEc:ibn:assjnl:v:12:y:2016:i:8:p:160
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    References listed on IDEAS

    as
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    Cited by:

    1. Jeyhun A. Abbasov & Khatai Aliyev, 2018. "Testing Wagner's Law and Keynesian Hypothesis in Selected Post-Soviet Countries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(5), pages 1227-1237.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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