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Asymmetric Growth Impact of Social Policy: A Post-Shock Policy Scenario for Egypt

Hany Abdel-Latif () and Tapas Mishra

No 1035, Working Papers from Economic Research Forum

Abstract: This paper empirically explores how fiscal policy represented by acceleration in government spending exerts asymmetric effects on economic growth in the context of a developing country, Egypt in particular. By allowing the theoretical plausibility of asymmetric effects of fiscal policy on economic activity, our research suggests that nothing can guarantee linearity between the growth impact of increasing and decreasing government expenditures. Using a non-linear ARDL model on Egypt data at both aggregated and disaggregated levels- for the period 1980-2013, this paper provides new evidence of a non-linear relationship between government spending and economic growth.

Pages: 19
Date: 2016-08, Revised 2016-08
New Economics Papers: this item is included in nep-ara and nep-mac
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Citations: View citations in EconPapers (1)

Published by The Economic Research Forum (ERF)

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