Government Expenditure and Economic Growth Nexus in Mena Countries: Frequency Domain Spectral Causality Analysis

Hicham Ayad

Economics and Business, 2020, vol. 34, issue 1, 60-77

Abstract: The paper aims at examining the causal relationship between economic growth and government expenditure in selected MENA countries over the period of 1987–2017. Unlike previous studies, we examine the causality in both panel data and time series data to get a clear idea about the causal relationships individually and as a full sample. We also revisited the causal relationship between the two variables within the framework of frequency domain causality. Our findings support the neutrality hypotheses in the short-run term for most of the countries. Thus, economic growth and government expenditure at most frequency levels evolve independently. On the other hand, we found the support of Wagner’s law, Keynes view, neutrality and bidirectional hypotheses in the long term.

Keywords: Economic growth; Government expenditure; Frequency domain spectral causality; Wagner’s law; MENA countries (search for similar items in EconPapers)
JEL-codes: C10 H50 O10 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/eb-2020-0005 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecobus:v:34:y:2020:i:1:p:60-77:n:5

DOI: 10.2478/eb-2020-0005

Access Statistics for this article

Economics and Business is currently edited by Remigijs Počs

More articles in Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().