The government revenue and government expenditure nexus: empirical evidence from nine Asian countries

There are no files associated with this record.

Title The government revenue and government expenditure nexus: empirical evidence from nine Asian countries
Author Narayan, Paresh Kumar
Journal Name Journal of Asian Economics
Year Published 2005
Place of publication USA
Publisher Elsevier
Abstract The nexus between government revenue and government expenditure has been an important topic in public economics. In this paper, we investigate evidence for cointegration and causality between government revenue and government expenditure for nine Asian countries. We use the recently developed bounds testing approach to cointegration and the conventional F-test to examine Granger causality. Our empirical results suggest that for three out of the nine countries government revenue and government expenditure are cointegrated. Our results on the direction of causation are mixed: (a) for Indonesia, Singapore, Sri Lanka in the short-run and for Nepal in both the short- and long-run we find support for the tax-and-spend hypothesis; (b) Indonesia and Sri Lanka are in conformity with the spend-and-tax hypothesis in the long-run; and (c) for other countries there is evidence of neutrality.
Peer Reviewed Yes
Published Yes
Publisher URI http://www.sciencedirect.com/science/journal/10490078
Alternative URI http://dx.doi.org/10.1016/j.asieco.2004.11.007
Copyright Statement Copyright 2005 Elsevier : Reproduced in accordance with the copyright policy of the publisher : This journal is available online - use hypertext links.
Volume 15
Issue Number 6
Page from 1203
Page to 1216
ISSN 1049-0078
Date Accessioned 2006-03-16
Date Available 2009-11-18T05:31:43Z
Language en_AU
Faculty Griffith Business School
Subject PRE2009-Time-Series Analysis
URI http://hdl.handle.net/10072/4470
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

Brief Record

Griffith University copyright notice