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Government Revenues And Expenditures In Guinea-Bissau: Causality And Cointegration

Author

Listed:
  • Francisco G. Carneiro

    (The World Bank)

  • Joao R. Faria

    (University of Texas at Dallas)

  • Boubacar S. Barry

    (The World Bank)

Abstract

The paper establishes empirically the temporal causality and long run relationship between government expenditures and government revenues for the case of Guinea-Bissau - a low income country under stress (LICUS) in Africa. A macroeconomic model is developed to lay out the hypothesis of a spend-tax behavior in the country¡¯s public finances management system. Empirical validation is carried out by means of a traditional Granger-causality test and the estimation of an error correction model between expenditures and revenues.

Suggested Citation

  • Francisco G. Carneiro & Joao R. Faria & Boubacar S. Barry, 2005. "Government Revenues And Expenditures In Guinea-Bissau: Causality And Cointegration," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 30(1), pages 107-117, June.
    • Handle: RePEc:jed:journl:v:30:y:2005:i:1:p:107-117
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    File URL: http://www.jed.or.kr/full-text/30-1/08_J680.PDF
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Andrew Phiri, 2018. "How sustainable are fiscal budgets in the Kingdom of Swaziland?," Working Papers 1810, Department of Economics, Nelson Mandela University, revised Mar 2018.
    2. Arcade NDORICIMPA, 2017. "Analysis of Asymmetries in the Tax-Spending Nexus in Burundi," Journal of Economics and Political Economy, KSP Journals, vol. 4(1), pages 53-70, March.
    3. A. Phiri, 2019. "Asymmetries in the revenue–expenditure nexus: new evidence from South Africa," Empirical Economics, Springer, vol. 56(5), pages 1515-1547, May.
    4. Sima Siami-Namini & Daniel Muhammad & Fahad Fahimullah, 2018. "The Short and Long Run Effects of Selected Variables on Tax Revenue - A Case Study," Applied Economics and Finance, Redfame publishing, vol. 5(5), pages 23-32, September.
    5. Afia Malik, 2013. "Private Investment And Fiscal Policy In Pakistan," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(1), pages 83-109, March.
    6. Takumah, Wisdom, 2014. "The Dynamic Causal Relationship between Government Revenue and Government Expenditure Nexus in Ghana," MPRA Paper 58579, University Library of Munich, Germany.
    7. Felix Kimtai Kiminyei, 2019. "Empirical Investigation on the Relationship among Kenyan Public Debt, Tax Revenue and Government Expenditure," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 142-159, March.
    8. Richard Doh-Nani & Dadson Awunyo-Vitor, 2012. "The Causal Link between Government Expenditure and Government Revenue in Ghana," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(2), pages 382-388, June.

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    More about this item

    Keywords

    Public Finances; Causality Tests; Cointegration Analysis;
    All these keywords.

    JEL classification:

    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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