The Optimal Magnitude of Government Spending: Evidence from Cambodia

IF 0.6 Q4 ECONOMICS South Asian Journal of Macroeconomics and Public Finance Pub Date : 2022-05-22 DOI:10.1177/22779787221093116

Leanghak Hok, Z. Bartha

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引用次数: 1

Abstract

Scholars and policymakers have vigorously debated what the impact of government spending on economic growth is. Some current research and theoretical models suggest that the reaction of economic growth to the extension of government spending can be either positive or negative. This article intends to investigate the inverted-U shaped relationship between output growth and government spending (i.e., government fixed capital formation [GFCF] and government final consumption expenditure [GFCE]). Ordinary least squares (OLS) is employed as an approach to annual data for Cambodia obtained from 1971 to 2015. The result reveals that GFCF and GFCE have an inverted-U shaped relation with economic growth and that 5.40% and 7.23% are the optimal values of GFCF and GFCE, respectively. The labour growth rate and export growth rate contribute positively to the growth rate of output. This study indicates that the increasing level of government expenditure reduces the efficacy of government spending, and also helps Cambodia’s policymakers to control fiscal policy more efficiently. JEL Classification: C80, E62, H50, O40

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政府支出的最佳规模：来自柬埔寨的证据

学者和政策制定者一直在激烈争论政府支出对经济增长的影响。目前的一些研究和理论模型表明，经济增长对政府支出扩展的反应可能是积极的，也可能是消极的。本文旨在研究产出增长与政府支出（即政府固定资本形成[GFCF]和政府最终消费支出[GFCE]）之间的倒U型关系。采用普通最小二乘法（OLS）对1971年至2015年柬埔寨的年度数据进行处理。结果表明，GFCF和GFCE与经济增长呈倒U型关系，其中5.40%和7.23%是GFCF和GF的最优值。劳动力增长率和出口增长率对产出增长率有积极贡献。这项研究表明，政府支出水平的提高降低了政府支出的效力，也有助于柬埔寨决策者更有效地控制财政政策。JEL分类：C80、E62、H50、O40

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来源期刊

South Asian Journal of Macroeconomics and Public Finance ECONOMICS-

CiteScore

2.10

自引率

11.10%

发文量

期刊介绍： The purpose of the Journal is to publish (in English language) peer-reviewed articles, reviews and scholarly comments on issues relating to contemporary global macroeconomics and public finance by which is understood: The Journal is for all professionals concerned with contemporary Macroeconomics and Public Finance and is a forum for all views on related subjects. The Editorial Board welcomes articles of current interest on research and application on the areas mentioned above. The Journal will be international in the sense that it seeks research papers from authors with an international reputation and articles that are of interest to an international audience. In pursuit of the above, the journal shall: a. draw on and include high quality work from the international community of scholars including those in the major countries of Asia, Europe, Asia Pacific, the United States, other parts of the Americas and elsewhere with due representation for considerations of the readership. The Journal shall include work representing the major areas of interest in contemporary research on Macroeconomics and Public Finance and on a wide range of issues covering macro- economics, tax and fiscal issues, banking and finance, international trade, labour economics, computational and mathematical methods, etc. The Journal would particularly engage papers on pure and applied economic theory and econometric methods. b. avoid bias in favour of the interests of particular schools or directions of research or particular political or narrow disciplinary objectives to the exclusion of others. c. ensure that articles are written in a terminology and style which makes them intelligible, not merely within the context of a particular discipline or abstract mode, but across the domain of relevant disciplines.