The Relation between Government Expenditures and Economic Growth in Thailand

7 Pages Posted: 4 May 2013 Last revised: 16 May 2013

See all articles by Komain Jiranyakul

Komain Jiranyakul

National Institute of Development Administration

Date Written: May 2, 2013

Abstract

The notion that more government expenditures can stimulate growth is controversial. The causation between government expenditures and economic growth in Thailand is examined using the Granger causality test. There is no cointegration between government expenditures and economic growth. A unidirectional causality from government expenditures to economic growth exists. However, the causality from economic growth to government expenditures is not observed. Additionally, estimation results from the least square method with lagged variables of economic growth, government expenditures and money supply show the strong positive impact of government spending on economic growth during the period of investigation.

Keywords: Economic growth, Government expenditures, Granger causality test, Least Square Estimation

JEL Classification: H50, N15, O23

Suggested Citation

Jiranyakul, Komain, The Relation between Government Expenditures and Economic Growth in Thailand (May 2, 2013). Available at SSRN: https://ssrn.com/abstract=2260035 or http://dx.doi.org/10.2139/ssrn.2260035

Komain Jiranyakul (Contact Author)

National Institute of Development Administration ( email )

118 Seri Thai Road
Bangkok, 10240
Thailand

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