Session
Management Business and Economy
Description
This study aims to investigate the relationship between government expenditures and GDP in Kosovo from 2009 to 2022. The methods used include econometric analyses of simple OLS linear regression, trend analysis, and Pearson correlation method, using data from the Kosovo Agency of Statistics (KAS) and the World Bank to provide empirical evidence on this complex relationship. The findings indicate a weak correlation between government expenditures and economic growth with effects in the short and long term. In the short term, the findings reveal that an increase in expenditures will raise Kosovo's GDP by 4.87%. However, in the long term, it is seen to decrease GDP by 1.66%. The study also performs another OLS analysis excluding the year 2020 due to the significant impact of COVID19 on Kosovo's economy. This analysis provides a significant contribution to the literature on Kosovo's economy and public policies
Keywords:
Government expenditures; economic development; GDP; Kosovo; long term; short term; correlation; trend; external factors; policy
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-982-15-3
Location
UBT Kampus, Lipjan
Start Date
25-10-2024 9:00 AM
End Date
27-10-2024 6:00 PM
DOI
10.3107/ubt-ic.2024.20
Recommended Citation
Jusufi, Erina and Avdimetaj, Kestrim, "The Relationship Between Government Expenditures and Economic Development: An Assessment for Kosovo" (2024). UBT International Conference. 20.
https://knowledgecenter.ubt-uni.net/conference/2024UBTIC/MBE/20
Included in
The Relationship Between Government Expenditures and Economic Development: An Assessment for Kosovo
UBT Kampus, Lipjan
This study aims to investigate the relationship between government expenditures and GDP in Kosovo from 2009 to 2022. The methods used include econometric analyses of simple OLS linear regression, trend analysis, and Pearson correlation method, using data from the Kosovo Agency of Statistics (KAS) and the World Bank to provide empirical evidence on this complex relationship. The findings indicate a weak correlation between government expenditures and economic growth with effects in the short and long term. In the short term, the findings reveal that an increase in expenditures will raise Kosovo's GDP by 4.87%. However, in the long term, it is seen to decrease GDP by 1.66%. The study also performs another OLS analysis excluding the year 2020 due to the significant impact of COVID19 on Kosovo's economy. This analysis provides a significant contribution to the literature on Kosovo's economy and public policies