Increase In Government Expenditure Research Articles

Impact of government expenditure on unemployment in Asian countries: does institutional quality matter?

Purpose Asian countries have had persistent unemployment levels. The purpose of this paper is to investigate the impact of government spending on unemployment. Furthermore, this paper investigates the moderating role of institutional quality on the government spending–unemployment nexus. Design/methodology/approach Using data from 35 Asian countries from 2000 to 2022, the dynamic ordinary least squares and fully modified ordinary least squares technique is used to tackle with aforementioned issue. In addition, pooled mean group estimation is applied to verify the robustness of the findings. Findings The results show that an increase in government expenditure and better institutions reduce the unemployment rate. Interestingly, the negative impact of government expenditure on unemployment will enhance and intensify with better institutional quality. Furthermore, trade openness and foreign direct investment decrease unemployment in Asian countries. The results are robust to various specifications. Practical implications Findings from this study provide important implications for governments. Governments should use public expenditure efficiently and enhance and improve institutional quality to reduce unemployment. Originality/value To the best of the author’s knowledge, this study pioneers the investigation of the moderating role of institutional quality in the relationship between government expenditure and unemployment in Asian countries.

Student Attendance Patterns as Actionable Early Warning Indicators of High School Graduation Outcomes: Findings from an Urban Alternative Charter School

Background: Students who fail to complete high school, on average, have less earnings, pay fewer taxes, and require increased government expenditures compared to those who do reach this milestone. Especially in urban jurisdictions, this can lead to reduced municipal fiscal health. Alternative high schools have been one intervention employed to improve the outcomes of students who have previously dropped out. Also, in recent decades, early warning indicator (EWI) systems have been put in place to flag students who are at risk for not completing school. However, the current EWI metrics for student attendance are insufficient for the population that attends alternative high schools. Methods: Administrative data were obtained from an alternative charter high school in a large urban city in the northeast United States (n = 224). Logistic regression analyses were conducted to test the utility of traditional EWI operationalizations of student attendance against more targeted measures, with student graduation serving as a dichotomous outcome variable. Results: Of the models tested, the model that flagged student non-attendance as missing consecutive days three or more times during the first 12 weeks of school had the greatest explanatory power (McFadden’s R2 = 0.301) and best overall model fit. Conclusions: Traditional definitions of attendance are less useful in schools doing re-engagement work, and more targeted indicators serve as more effective EWIs in these settings.

Impact of Inflation Rate, Remittance Income, and Public Loan on Government Expenditure: Evidence Derived from the Nepalese Economy

This study examines the impact of inflation rate, remittance income, and public borrowing on the government's annual expenditure. This study is based on the descriptive and exploratory research design. It follows the positivist research philosophy and quantitative characteristics. It uses secondary data collected from various economic surveys in Nepal and reports from the World Bank. It covers 33 data points from 1990 to 2022. Simple statistical and econometric tools like descriptive statistics, robust regression analysis, Normality test, and confidence interval test are used in this study. The inflation rate, public borrowing, and remittance income are responsible for increasing Nepal's government expenditure. The inflation rate is not individually significant in determining the spending in Nepal. Remittance income has a considerable positive impact on total expenditure in Nepal. One unit increase in remittance income results in a 0.109648 unit increase in government expenditure in Nepal. Likewise, public borrowing is highly significant in explaining government expenditure. One unit increase in public borrowing results in a 1.145037 unit increase in government expenditure in Nepal. Nearly 73.69 percent variation in total government expenditure depends on Nepal's inflation rate, remittance income, and public borrowing. Policymakers in Nepal should focus on bolstering remittance inflows and implementing prudent public borrowing management strategies to foster sustainable economic growth while recognizing the limited influence of the inflation rate on government expenditure.

Effect of procurement devolution process of medical supplies on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya

This study analyzed the effect of procurement devolution process of medical supplies on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya. Although increased government expenditure was expected to improve efficiency and better health outcomes, Kenya’s public health sector remains inefficient. The study adopted a quantitative descriptive research design that targeted 3199 employees in 401 level 2-5 public health facilities (PHFs). Using Slovin’s formula, a sample size of 355 was proportionately sampled. While secondary data was obtained through desk review, primary data was collected through structured questionnaires that were administered to different cadres of employees. Primary data was coded and analyzed using STATA/SPSS. To compute technical efficiency of PHFs, the two-stage Data envelopment analysis (DEA) and multivariate logistic regression was adopted. Study findings show that devolution has improved demand for medical supplies, enhanced procurement efficiency, and promoted ethical procurement. However, complaints from patients have not reduced while training of procurement personnel has not increased. Regression analysis indicates a significant relationship between human capital and technical efficiency. The coefficient of human capital development was 0.199 (T-value= 9.514, p- value= 0.000< 0.05 significant level); implying a positive effect of procurement devolution process on technical efficiency. This study concludes that despite increased health expenditure in Kenya, public health healthcare services have deteriorated due to inefficiency of the public health sector. This study recommends increased financial and human resource support to Kenya’s public health care.

Remittances and government expenditures on human capital in developing countries

This paper investigates the effect that remittances have on government expenditures on human capital within a large panel of developing countries. Remittances reduce government expenditures on education by 0.23–0.84 percentage points for every 10 percentage point increase in remittances. Remittances, by contrast, increase government expenditures on health by 0.99–1.83 percentage points for every 10 percentage point increase in remittances. These findings indicate that remittances induce reallocation of government expenditures from education to health. Democratic political institutions shape the relationship between remittances and government expenditures on human capital. I present additional evidence that government expenditures on education respond differentially to remittances in Small Island Developing States, a group of countries with unique characteristics that make them vulnerable to adverse economic and environmental shocks.

Effect of human capital devolution process on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya

This study investigates how the process of human capital devolution affects the technical efficiency of public health facilities in Nakuru and Baringo Counties in Kenya. Despite the expectation that increased government expenditure would enhance efficiency, the public health sector in Kenya continues to need more efficiency. The study was guided by the Human Capital Theory. The human capital devolution process was measured by academic and professional qualification, training and conferences, research and publications, and expenditure on salaries and allowances. This study drew from the Cobb-Douglas production function theory. Employing a quantitative descriptive research design, the study targeted 3199 employees across 401 level 2-5 public health facilities, with a focused sample of 355 proportionately selected employees. Primary data was gathered using structured questionnaires coded and analysed using STATA/SPSS software. Technical efficiency was assessed using two-stage Data Envelopment Analysis (DEA) and multivariate logistic regression. The regression analysis results revealed a significant relationship between human capital and technical efficiency, with a coefficient of human capital development at 0.331 (T-value= 4.384, p-value= 0.000< 0.05 significant level). This indicates a positive impact of human capital devolution on technical efficiency, where a unit increase in human capital development leads to a 0.331 increase in technical efficiency. The study recommends that financial challenges, the unequal distribution of national resources, and poor funding of devolution services can be solved by transferring all functions earmarked to County Governments as per Schedule IV in the Constitution of Kenya, 2010.

Effect of procurement devolution process of medical supplies on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya

This study analysed the effect of the procurement devolution process of medical supplies on the technical efficiency of public health facilities in Nakuru and Baringo Counties of Kenya. Although increased government expenditure was expected to improve efficiency and better health outcomes, Kenya's public health sector remains inefficient. The study used a quantitative descriptive research design that targeted 3199 employees in 401 level 2-5 public health facilities (PHFs). Using Slovin’s formula, a sample size of 355 was proportionately sampled. While secondary data was obtained through desk review, primary data was collected through structured questionnaires that were administered to different cadres of employees. Primary data was coded and analysed using STATA/SPSS. To compute the technical efficiency of PHFs, the two-stage Data envelopment analysis (DEA) and multivariate logistic regression were adopted. Study findings show that devolution has improved demand for medical supplies, enhanced procurement efficiency, and promoted ethical procurement. However, complaints from patients have not been reduced, and the training of procurement personnel has not increased. Regression analysis indicates a significant relationship between human capital and technical efficiency. The coefficient of human capital development was 0.199 (T-value= 9.514, p- value= 0.000< 0.05 significant level), implying a positive effect of the procurement devolution process on technical efficiency. This study concludes that despite increased health expenditure in Kenya, public health healthcare services have deteriorated due to the inefficiency of the public health sector. This study recommends increased financial and human resource support for Kenya's public health care.

Determinant of Human Development in Nigeria

The research investigates the factors influencing human capital development (HCD) in Nigeria. Historically, the Nigerian government has overlooked the significant deterioration in both human capital development and infrastructure, which leads to decreased productivity in the country's economy. The primary goal of this study is to explore the factors influencing human capital development in Nigeria. The study investigated the patterns and trends of human capital development in Nigeria over a span of 35 years, encompassing the period from 1988 to 2022. Top of Form; examined the factors that determine human capital development in Nigeria. The time series analysis was used to investigate the effect of fertility rate, gross domestic product, inflation rate, human development index. The data utilized in this study were sourced from the World Bank database (WDI) the Central Bank of Nigeria (CBN). The study utilized descriptive measurements, which included mean, median, skewness and kurtosis; just as inferential statistics which included correlation analysis, unit root test, Autoregressive distributed lag model (ADL) and error correction estimates as the estimation tools. The study found proof of short run connection among the variables. The study further found that gross domestic product exhibits a positive effect on the Human Development Index, although this effect is found to be statistically insignificant. (t = 1.32; p = 0.206), fertility rate demonstrates a negative and statistically significant effect on the Human Development Index. (t = -1.66; p = 0.002), inflation rate has positive and significant effect on human development index (t= -0.8; p= 0.0215). This, accordingly, suggests that fertility rate and inflation rate contribute more significantly to human capital development in Nigeria. From the study it is concluded that the fertility rate and inflation rate are the variable that mostly determines human capital development in Nigeria. From the findings, the study suggests enhancing the quality of healthcare services through increased government expenditure in the health sector in other to enhance the quality of human development.

Asymmetric Effects of Economic Policy Uncertainty on Food Security in Nigeria

This study investigates the asymmetric effects of economic policy uncertainty (EPU) on food security in Nigeria, utilizing annual time series data from 1970 to 2021. The study used descriptive statistics, unit root tests, the nonlinear autoregressive distributed lag (NARDL) model and its associated Bounds tests to analyze the data. The analysis reveals that adult population, environmental degradation, exchange rate uncertainty (EXRU), financial deepening, food security (FS), government expenditure in agriculture uncertainty (GEAU), inflation, and interest rate uncertainty (INRU) exhibit positive mean values over the period, with varying degrees of volatility. Cointegration tests indicate a long-term relationship between EPU variables (GEAU, INRU, and EXRU) and food security. The study finds that cumulative positive and negative EPU variables have significant effects on food security in the short run. Specifically, negative GEAU, positive INRU, positive and negative EXRU have significant effects in the short run. In the long run, negative GEAU, positive and negative EXRU have significant effects on food security. Additionally, the research highlights asymmetric effects, showing that the influence of GEAU and EXRU on food security differs in the short- and long-run. The study underscores the importance of increased government expenditure on agriculture, control of exchange rate and interest rate uncertainty, and the reduction in economic policy uncertainty to mitigate risks in the agricultural sector and enhance food security. Recommendations include strategies to stabilize exchange rates to safeguard food supply and overall food security.

Government Expenditure on Education and Economic Growth: An Econometric Study

The increase in government expenditure on education is commonly considered to have a positive effect on economic growth by raising GDP per capita. This essay aims to examine the effectiveness of education investment in driving economic growth. The panel Ordinary Lease Square (OLS) model is used to establish a regression model with data sets for Asian least developed, developed, and developing countries from 1995 to 2015 and a case study on China and Malaysia. The regression model manifests public spending on education as having a stimulative effect on economic growth in countries that have a stable and relatively more developed economy. The case study investigated the relationships between six factors relating to the government’s expenditure in education and found that investment in secondary schools has a strong relationship with prominent economic returns.

Effect of Tax Revenue and Foreign Grants on Government Activities: A Study in Nepalese Perspective

This study aims to examine the impact of previous years’ government expenditure, tax revenue, and foreign grants on determining Nepal's government activities or expenditures. The secondary data from used in the analysis. It includes 48 data points from 1974/75 to 2021/22, collected from the publication of Nepal Rastra Bank and economic surveys of Nepal. The descriptive and exploratory research designs are used in this study. Some statistical and econometric tools like descriptive statistics, Kolmogorov-Smirnov test, multiple regression analysis, analysis of variance (ANOVA), and residual analysis are used in this study. The previous expenditure determines the present government activities. Tax revenue, foreign grants, and previous years’ government expenditures are individually and jointly significant in determining the government expenditure. One unit increase in tax revenue and foreign grants resulted in a 0.177 and 0.046 unit increase in government expenditure in Nepal, respectively. 86.5 percent variation in government activities is determined by the previous year's government expenditure, tax revenue, and foreign grants. The positive impact of tax revenue is more than foreign grants on spending government activities. So, the policymakers must prioritize measures that increase domestic tax revenue.

The impact of trade and globalization on the economic development of nations

The rise of globalization has exacerbated disparities between developing and developed nations. This economic imbalance may be explained through the different export strategies (e.g., commodity vs non-commodity) that countries employ. This paper explores how trade and globalization impacts the economic development of nations with a specific focus on how different export strategies impact outcomes. Focusing on one developing nation, Bolivia in Latin America, and one developed nation, the United States, this paper provides an explanation of why exporting non-commodities leads to greater development. Fundamental learnings to support this include the promotion of more diversity in a workplace, higher rates of innovation, higher-skilled jobs, higher national wages, better working conditions, and non-value detracting FDI. It also enables countries to specialize in goods or services that they have comparative advantage in, in order to foster greater revenue. This research allows for essential insights into notions for development trajectories; developing nations can adapt their export strategies by diversifying into manufactured goods, increasing government expenditure into the secondary sector, and capitalizing on natural resources by revising resource-extracting trade agreements.

Does Wagner’s Hypothesis Explain the Dynamics of Health Expenditures in Transition Countries?

The purpose of this study is to analyze the short and long run causal relationship between public health expenditure and GDP per capita in transition economies within the context of the Wagner hypothesis. For the period 2000-2020, the empirical analysis was conducted using a dataset covering 22 transition countries: Latvia, Belarus, Czechia, Georgia, Bulgaria, Hungary, Estonia, Croatia, Moldova, Bosnia and Herzegovina, Slovenia, Ukraine, Armenia, Lithuania, Russian Federation, Slovak Republic, Romania, Turkmenistan, Uzbekistan, Tajikistan, Kyrgyz Republic, and Kazakhstan. Wagner emphasizes that increases in government expenditure, considered an endogenous variable, do not drive GDP growth. In essence, Wagner argues that a rise in GDP leads to an increase in government expenditures. The study assessed the validity of Wagner’s hypothesis by applying the Panel Cross-Sectionally Augmented Autoregressive Distributed Lag model (CS-ARDL), developed by Chudik et al. (2016), using annual data. For the empirical analysis, panel data from selected transition countries underwent causality tests proposed by Juodis, Karavias and Sarafidis (2021) and Dumitrescu and Hurlin (2012). The stationarity of the series was assessed using a panel unit root test. Subsequently, the panel cointegration test developed by Westerlund (2007) was employed to ascertain the long run cointegration of the variables in the subsequent phase. The results suggest that the Wagner hypothesis holds true within the context of transition countries, as indicated by the outcomes of the CS-ARDL model. The causality test revealed a one-way causal linkage between GDP per capita and health expenditure. Recommendations for those who make policy decisions were made in light of the findings.

The Social, Economic, and International Relations Impact of the 2023 Israel-Hamas War

Hamas's attack on Israel on October 7th, 2023, is not the first of its type. The Israeli-Palestine tension can be traced back to 1947 following the UN Partition Plan that divided the British Mandate of Palestine into Jewish and Arab Nations. Following Britain’s withdrawal from the Peninsula, the Jewish leaders declared the State of Israel, sparking the first Arab-Israeli conflict and this tension has worsened over the years. We use Thomas Hobbes's Social Contract to explain the tension between both parties. According to Hobbes, man lives in a State of Nature which is characterized by war and the continuous fear of death. This fear of death is the reason why man enters into a contract (Social Contract). There have been diverse schools of thought as to the origin of the Israeli-Palestine tension. Some believe it is the 1947 UN Partition Plan, others believe it is the June 1967 war, while others believe it is religion. Regardless of the original cause, it is evident that both parties have retained severe casualties over the years. Hence, the purpose of this paper is to review the economic, social, and international relations consequences of the 2023 Israel-Hamas war. The current war has had several social consequences: refugee migrations, lack of basic survival necessities, withdrawal of medical aid groups, starving refugees, desolated cities, and allegations of rape and sexual torture. Economically, the war has led to the loss of income from economic activities, an increase in oil prices, reignited inflation, high-interest rates, increased government expenditures, and exchange rates. It has also impacted international relations among nations due to a split in support between Israel and Palestine. Nevertheless, there is an allowance for further study because this paper is limited only to the social, economic, and international relations impact of the war.

The Impact of Property Crime on Public Infrastructure Development in the Nigerian Cities

Property crime in Nigeria incurs billions of Naira in annual rehabilitation costs, significantly straining government budgets and hindering resource allocation for sustainable urban development. This study investigates how public infrastructure development in Nigerian citiesis impacted by property crime focusing on the Lagos metropolis. Utilising both primary and secondary data, including in-depth interviews with five building industry professionals and government records analysis.The research adopts parallel data analysis to assess the financial impact of property crime, its relationship with environmental decay, economic losses, social consequences, and its effect on project delivery timelines. It exemplifies the use of triangulation as a methodological metaphor for drawing inferences from qualitative and quantitative findings. The findings demonstrate that property crime severely hampers public infrastructure development, resulting in increased government expenditure, environmental degradation, economic setbacks, public suffering, and delays in project completion. The study underscores the need for comprehensive strategies to mitigate property crime and ensure sustainable infrastructure development. Effective measures, including enhanced security partnerships and community engagement, are crucial for protecting public assets and informing policymakers in the development of effective policies for managing and maintaining the nation’s public infrastructure.

New evidence of the relationship between media, culture industry, and mineral efficiency in high and low income asian economies

In addressing the current challenge, this research thoroughly investigates the intricate interplay between media, culture, and mineral efficiency in 23 diverse Asian economies, classified based on their income levels. Leveraging data spanning from 2005 to 2020 and utilizing logarithmic transformations, this study navigates the complex web of relationships. The results highlight a notable positive impact of media penetration on mineral efficiency, particularly in high and upper middle-income nations that boast advanced media infrastructure and higher levels of education. Concurrently, increased government expenditure on media amplifies mineral efficiency within these contexts. The influence of advertising, however, varies depending on consumer behavior, media infrastructure, and market maturity. Control variables bring to light the negative impact of population size and the positive correlation of clean energy with mineral efficiency in high and upper middle-income economies. Formulating tailored policies for media-driven enhancement of mineral efficiency is crucial for both income groups, with a focus on strategic campaigns, cultural initiatives, and educational programs.

Disaggregated Impact of Government Expenditure on Economic Growth: Evidence from Nigeria

The quest to accelerate the pace of development of the economy in a bid to transform Nigeria into the group of developed economies by achieving certain macroeconomic objectives had called for increasing government expenditure in the provisions of public goods for the people and the nation. In view of the role of public expenditures on national progress and prosperity, this study empirically examined the disaggregated impact of the expenditures on economic growth in Nigeria for the period 1986-2021 using ARDL model as a tool for analysis. The important findings from the study suggest that capital and recurrent expenditures on community, social and economic services significantly boost economic growth in both short and long runs but the recurrent expenditure is negatively significant in the short run. Similarly, recurrent expenditure on community, social and economic services is also positively and significantly related with real GDP. Although capital and recurrent expenditures on administration and transfer are found to retard economic growth in the short run; they turn out to significantly enhance national output in the long run. Other findings from the study revealed that capital stock significantly promotes growth whereas labour slows down the growth across both short and long runs. The study recommends that government should lay a solid foundation and provide a workable business ground for individuals and firms. Government should also pay attention to finance growth enhancing spending categories such as infrastructure, research and development, education and health that would enhance human development in the country.

Maliye Politikalarının İşsizlik Üzerine Etkisi: Türkiye İçin Ampirik Bir Kanıt

The economic policies implemented in a country can directly or indirectly affect many macroeconomic indicators. One of these macroeconomic indicators is the unemployment rate. The government's aim to reduce unemployment with the economic policies they implement. Especially in times of crisis, fiscal policies come to the fore, find a wider application area and support employment. The effects of fiscal policies may differ between expansionary and contractionary policies. The aim of this study is to investigate the effect of fiscal policies implemented in Türkiye on unemployment. For this purpose, monthly data for the period 2014:1-2022:12 were used in the study. In the study, public expenditures, direct and indirect tax revenues are used to represent fiscal policy. The ARDL bounds test was used in the analysis. In addition, the frequency domain causality test developed by Breitung and Candelon (2006) was used to the robustness check of the findings. The findings show that increases in government expenditures increase unemployment in the long run. On the other hand, while increases in indirect taxes reduce unemployment, increases in direct taxes have no effect on unemployment. The findings obtained from the causality test also support this situation.

Economic compensation for elite dismissals in authoritarian regimes: Evidence from Chinese provincial officials

Personnel dismissals of high-ranking elites in authoritarian regimes are ubiquitous. However, the consequences of these events have not been thoroughly examined. This study explores the economic consequences of political dismissals in China, one of the most durable authoritarian regimes in the world. In the face of dismissals, a regime's concern lies in ensuring that the dismissed officials do not cause antiregime sentiments toward the public. Therefore, the regime is willing to preempt the possibility by enhancing the state–public relationship. To realize this cooperation, the regime distributes economic benefits to the public. The satisfied public is unlikely to support the dismissed elites against the regime. By examining the government spending data of China's provinces, this paper demonstrates that the Chinese government compensates the local public by increasing government expenditures in the locality that has recently experienced a dismissal of one of its high-ranking officials.

Estimating fiscal multipliers for North Macedonia: a structural vector error correction model

The aim of this research is to evaluate the effectiveness of fiscal policy as a means of influencing output in North Macedonia. We apply a VEC model, and use quarterly data for the period 2000q1-2019q4. Our findings suggest that the possibility of fiscal policy to be used as a short-term stabilization tool was limited by the turbulent early phase of transition and several IMF arrangements; the exchange rate peg; and the scarcity of financial resources. The results of the baseline model suggest that a government spending shock is more effective as a stabilization fiscal tool in Macedonia, compared to a tax shock, although fiscal multipliers smaller than one suggest that the effectiveness of fiscal policy in boosting output is limited. The findings confirm the importance of structural characteristics, suggesing that not accounting for monetary policy reaction and debt dynamics will result in an overstatement of fiscal multipliers. In
 particular, the results suggest that the “crowding out” effect of fiscal policy due to interest rate pressure is absent and that monetary policy is accommodating an expansionary fiscal policy. The results of our investigation suggest that an increase in government expenditures will induce a significant increase in taxes. Moreover, although an increase in spending/taxes will result in a short-lived increase/decrease in public debt, as a priori expected, we find a long-equilibrium relationship between government spending and taxation suggesting that debt sustainability is not an issue in the case of Macedonia.