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Competitiveness and government spending in Cambodia: An autoregressive distributed lag approach

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  • Leanghak Hok

    (University of Miskolc)

Abstract

In the globalization age, global competitiveness is gaining attention from policymakers and scholars. This paper focuses on a measurement of trade competitiveness based upon the expansion of market size. Fiscal policy has become a subject of debate since the global crisis of 2008. This paper attempts to examine the influence of government spending (i.e., government investment and consumption) on trade competitiveness. The Autoregressive Distributed Lags (ARDL) approach is used to estimate the dynamic relationship. The result, based on Cambodia's annual data from 1970 to 2015, shows that Cambodia’s trade competitiveness increases when there is a rise in public investment, government purchases, or aggregate private spending. This study shapes an alternative perception of the effectiveness of fiscal policy as domestic expenditure in enhancing international macroeconomic activities.

Suggested Citation

  • Leanghak Hok, 2020. "Competitiveness and government spending in Cambodia: An autoregressive distributed lag approach," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 16(02), pages 27-40.
    • Handle: RePEc:mic:tmpjrn:v:16:y:2020:i:02:p:27-40
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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2020/02/TMP_2020_02_03.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Competitiveness; public investment; government consumption; ARDL approach; Cambodia;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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