Government Expenditures and Economic Growth: Empirical Evidence for Western Balkan Countries
Session
Management, Business and Economics
Description
The main aim of this scientific study is to present the relationship between government expenditures and economic growth. More specifically, this paper will analyze the impact of government expenditures on economic growth in Western Balkans countries. The study will analyze in a long-term period the effect of government expenditures on economic growth from 1995 to 2021. To test the relationship between government expenditures and economic growth, we will use econometric models such as OLS, Fixed Effects, Random Effects, as well as Dynamic Panel Data through the Arellano- Bond and Arellano-Bover tests. The results show that there is a negative relationship between government expenditures and economic growth. An increase of government expenditures by 1% its effect will be negative by -0.39% on economic growth in the Western Balkans countries, the exceptions are private consumption expenditures and government expenditures for education, which have shown a positive relationship with economic growth. These results are very significant for Western Balkans countries
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-50-5
Location
UBT Kampus, Lipjan
Start Date
29-10-2022 12:00 AM
End Date
30-10-2022 12:00 AM
DOI
10.33107/ubt-ic.2022.427
Recommended Citation
Avdimetaj, Kestrim and Gërvalla, Muhamet, "Government Expenditures and Economic Growth: Empirical Evidence for Western Balkan Countries" (2022). UBT International Conference. 443.
https://knowledgecenter.ubt-uni.net/conference/2022/all-events/443
Government Expenditures and Economic Growth: Empirical Evidence for Western Balkan Countries
UBT Kampus, Lipjan
The main aim of this scientific study is to present the relationship between government expenditures and economic growth. More specifically, this paper will analyze the impact of government expenditures on economic growth in Western Balkans countries. The study will analyze in a long-term period the effect of government expenditures on economic growth from 1995 to 2021. To test the relationship between government expenditures and economic growth, we will use econometric models such as OLS, Fixed Effects, Random Effects, as well as Dynamic Panel Data through the Arellano- Bond and Arellano-Bover tests. The results show that there is a negative relationship between government expenditures and economic growth. An increase of government expenditures by 1% its effect will be negative by -0.39% on economic growth in the Western Balkans countries, the exceptions are private consumption expenditures and government expenditures for education, which have shown a positive relationship with economic growth. These results are very significant for Western Balkans countries