The Relationship between Federal Government Revenues and Expenditures in Pakistan

Fazal Husain, Muhammad Ali Qasim and Mahmood Khalid ()
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Fazal Husain: Pakistan Institute of Development Economics, Islamabad
Muhammad Ali Qasim: Pakistan Institute of Development Economics, Islamabad

The Pakistan Development Review, 2010, vol. 49, issue 4, 641–649

Abstract: The paper investigates the relation between expenditures and revenues of the federal government of Pakistan for the period 1978-79 to 2008-09 using the Toda and Yamamoto (1995) methodology. The results show that there is a unidirectional causality from expenditures to revenues. The results indicate evidence of the spend-revenue hypothesis for Pakistan. The Potential investors may construe this government behaviour negatively, therefore, the investment decisions may take into account the possibilities of paying higher taxes in future.

Keywords: Revenue; Expenditure and Causality (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:49:y:2010:i:4:p:641-649

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